Question
A company considers a new project. The required rate of return (WACC) on the project is 10 percent. Which of the following statement is correct?
A company considers a new project. The required rate of return (WACC) on the project is 10 percent. Which of the following statement is correct?
If the projects NPV = $1,500, the company should accept the project. | ||
If the projects IRR < 10 percent, the company should accept the project. | ||
If the projects MIRR < 10 percent, the company should accept the project. | ||
If the projects PI > 0, the company should accept the project. | ||
If the projects payback period > required cutoff payback, the company should accept the project. | ||
If the projects NPV < 0 and IRR > 10 percent, the company should accept the project. |
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