Antonio wants to purchase Cleo's PatraRestaurant. Antonioestimates theproject hasan IRR of 16.3 percent, a Profitability Indexof 1.49, an NPV of $19,387, and a discounted payback period of 3.21years. Which one of the following statements is likely correct given the project hasconventional cash flows?<\/p>
<\/p>
A) The discount rate used in computing the net present value was less than 3%<\/p>
B) The firm's required discounted payback period on new project's must be less than 3.21 years<\/p>
C) The present value of the project's cash inflows must be less than $1.49<\/p>
D) The discount rate that sets NPV equal to zero must be less than 16.3%<\/p>
E) The payback period must be more than 3.21 years<\/p>", "transcribed_text": "", "related_book": { "title": "The Company Valuation Playbook Invest With Confidence", "isbn": "1838470816, 978-1838470814", "edition": "1st Edition", "authors": "Charles Sunnucks", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/01\/659e8d7741ff1_719659e8d773d380.jpg", "uri": "\/textbooks\/the-company-valuation-playbook-invest-with-confidence-1st-edition-978-1838470814-187563", "see_more_uri": "" }, "free_related_book": { "isbn": "B086C37884", "uri": "\/textbooks\/feishibang-flexible-sport-training-bungee-resistance-speed-band-basketball-and-football-all-sports-exercise-equipment-improve-speed-strengthen-jump-higher-moveable-quickly-training-b086c37884-148697", "name": "Feishibang Flexible Sport Training Bungee Resistance Speed Band Basketball And Football All Sports Exercise Equipment Improve Speed Strengthen Jump Higher Moveable Quickly Training", "edition": "" }, "question_posted": "2024-06-10 03:13:45", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/find-the-numbers-such-the-average-value-of-fx", "description": "Find the numbers such that the average value of f(x) = 2 + 6x 3x2 on the interval [0, b] is equal to 3.", "stars": 3 }, { "url": "\/study-help\/introduction-to-business-statistics\/an-assembly-process-includes-a-torque-wrench-device-that-automatically", "description": "An assembly process includes a torque wrench device that automatically tightens compressor housing bolts; the device has a known process standard deviation of = 3 lb-ft in the torque applied. A...", "stars": 3 }, { "url": "\/study-help\/psychology\/what-is-selfdisclosure-and-why-is-it-important-critical-t-1982505", "description": "What is self-disclosure, and why is it important? Critical T hinking", "stars": 3 }, { "url": "\/lofthouse-machinery-co-includes-a-2year-warranty-on-its-machinery", "description": "Lofthouse Machinery Co. includes a 2-year warranty on its machinery sales. At the end of 2011, an analysis of the warranty records reveals an accumulated temporary difference of $120,000 for warranty...", "stars": 3 }, { "url": "\/study-help\/questions\/odividend-o-bond-o-capital-gain-o-share-is-a-9910594", "description": "Odividend O bond O capital gain O share is a direct payment from a firm to its shareholders", "stars": 3 }, { "url": "\/study-help\/operations-research-an-introduction\/you-have-the-chance-to-invest-your-money-in-either", "description": "You have the chance to invest your money in either a 7.5% bond that sells at face value or an aggressive growth stock that pays only 1% dividend. If inflation occurs, the interest rate will go up to...", "stars": 3 }, { "url": "\/study-help\/questions\/1-which-emotion-interests-you-the-most-and-why-2-575210", "description": "(1) which emotion, interests you the most and why? (2) which brain regions do you think will be involved in this emotion, and (3) do you think we were born with this emotion and its neural...", "stars": 3 }, { "url": "\/study-help\/questions\/differentiate-the-function-x-1-1050455", "description": "differentiate the function ( x + 1 ) \/ ( x ^ 3 + x - 6 )", "stars": 3 }, { "url": "\/study-help\/questions\/for-a-voltage-v210-sin-170xt-find-the-rootmeansquare-voltage-995970", "description": "For a voltage V-210 sin 170xt, find the root-mean-square voltage for one period. Vrms = (Round to the nearest integer as needed.)", "stars": 3 }, { "url": "\/study-help\/questions\/m3-discussion-on-growth-in-developed-and-developing-countries-1035395", "description": "M3: Discussion on Growth in Developed and Developing Countries - Discussion Group 7 From ECON562_FA23 For this discussion share your personal or business experience in dealing with developed and\/or...", "stars": 3 }, { "url": "\/study-help\/questions\/a-gubernatorial-candidate-in-the-state-of-new-hampshire-once-1016190", "description": "A gubernatorial candidate in the state of New Hampshire once ran on a single issue: to stop disposing of wastewater sludge on land in New Hampshire. Suppose you had the opportunity to ask him three...", "stars": 3 }, { "url": "\/study-help\/questions\/n-sorenson-has-been-the-head-of-the-sales-department-1056937", "description": "n Sorenson has been the head of the Sales department for the past six months. Approaching the end of the financial year, Thomas, the president of the company wants Sorenson to increase the...", "stars": 3 }, { "url": "\/study-help\/questions\/overview-of-the-case-analysis-we-have-discussed-many-concepts-5043463", "description": "Overview of the Case Analysis We have discussed many concepts in SCM 301 related to planning, sourcing, making and delivering products and services. The purpose of this case analysis is to integrate...", "stars": 3 }, { "url": "\/study-help\/cost-accounting\/present-the-flow-of-costs-under-a-perpetual-cost-accumulation-1542378", "description": "Present the flow of costs under a perpetual cost accumulation system. mi6", "stars": 3 }, { "url": "\/study-help\/cost-accounting\/how-are-the-three-basic-elements-of-a-products-cost-1542376", "description": "How are the three basic elements of a products cost accumulated under a process cost accumulation system? lop5", "stars": 3 }, { "url": "\/study-help\/cost-accounting\/how-are-the-three-basic-elements-of-a-products-cost-1542377", "description": "How are the three basic elements of a products cost accumulated under a job order cost system? lop0", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/14-calculus-questions-1-find-an-equation-of-the-tangent-2559556", "next": "\/study-help\/questions\/if-the-market-returns-8-penncos-stock-returns-12-if-2559558" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "Antonio wants to purchase Cleo's PatraRestaurant. Antonioestimates theproject hasan IRR of 16.3", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/antonio-wants-to-purchase-cleos-patrarestaurant-antonioestimates-theproject-hasan-irr-2559557" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } } } }