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A FACTORY MANAGER HAS SET STANDARDS FOR NEW PROJECTS THAT DICTATE THE REQUIRED RATE OF RETURN BE 15% OR THE PAYBACK PERIOD BE No MORE

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A FACTORY MANAGER HAS SET STANDARDS FOR NEW PROJECTS THAT DICTATE THE REQUIRED RATE OF RETURN BE 15% OR THE PAYBACK PERIOD BE No MORE THAN 4 years. WHICH MEASUREMENT FROM AN EXAMPLE CAPITAL PROJECT BE ACCEPTED? 1) NPV IS LESS THAN $0 2) IRR IS 17% 3) PROFITABILITY INDEX IS 0.09 4) Pay Back Period is 5.12 yemes

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