Question
A project has an up-front cost of $100,000. All subsequent cash flows are positive. The projects required return is 8percent and its net present value
A project has an up-front cost of $100,000. All subsequent cash flows are positive. The projects required return is 8percent and its net present value is $10,000. Which of the following statements is most correct?
a.The projects internal rate of return is more than 8percent.
b.The projects modified internal rate of return is more than 8percent.
c.Both are correct.
d.None of the above answers is correct.
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Single Stock Futures
Authors: Patrick Lafferty
1st Edition
007159003X, 978-0071590037
