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A proposed project achieves breakeven and payback well within a study period of 3 years. It has an NPV of $12M at r = 7%
A proposed project achieves breakeven and payback well within a study period of 3 years. It has an NPV of $12M at r = 7% per year, and an IRR of 20%, and very little risk. Yet the CFO rejects it. What other factor could be wrong with the proposed project? Discount Factor too high Salvage Value o Cumulative Cash flow not sufficient Sunk Cost too great Funding
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