Description of this paper

A project has an up-front cost of $100,000. The pr...

Description

Solution


Question

A project has an up-front cost of $100,000. The project's WACC is 12 percent and its net present value iss $10,000. Which of the following statements is most correct? a. The project should be rejected since its return is less than the WACC. b. The project's internal rate of return is greater than 12 percent. c. The project's modified internal rate of return is less than 12 percent d. All of the above answers are correct. e. None of the above answers is correct.

 

Paper#7254 | Written in 18-Jul-2015

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