COF Your firm is considering a project with the following cash flows. The firm has a weighted average cost of capital of 7%. The firm typically accepts projects that payback in less than 2.50 years. Using what you know about payback, which of the following statements is true regarding the firm's project selection? Year CF 0-$300,000 1 $275,000 2 -$30,000 3 $100,000 4 $500,000 The project pays back its initial investment in 2.85 years, and the firm should reject the project. The project has a payback of 30.42%, and the firm should accept the project. The project pays back its initial investment in 2.55 years, and the firm should reject the project. None of the Above Your firm is interested in pursuing a new project. The firm typically accepts projects that payback in three years or less, and the firm has a weighted average cost of capital of 12%. Which of the following statements is true? The project has a MIRR of 8%. The firm should accept the project. The project has a discounted payback of 4.50 years. The firm should accept the project. The project has a payback of 4.02 years. The firm should accept the project. None of the Above When using NPV to choose between mutually exclusive projects, you should select the project with the highest NPV. True False