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Assume a firm currently has an earnings-price-ratio (EPR) of 0.06. A new investment project promises an 8% rate of return. Should the investment be undertaken?

Assume a firm currently has an earnings-price-ratio (EPR) of 0.06. A new investment project promises an 8% rate of return. Should the investment be undertaken?

Please select:

a.

I cannot tell because the EPR is not necessarily a good decision criterion.

b.

No

c.

Yes

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