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Consider a project that has regular cash flows (i.e. no negative cash flows after Time 0). Based on accept/reject rules, the project should be accepted
Consider a project that has regular cash flows (i.e. no negative cash flows after Time 0). Based on accept/reject rules, the project should be accepted if the:
Profitability Index is less than or equal to 1. |
IRR exceeds the required return for the project. |
Discounted payback is less than the payback period. |
Payback period is less than the life of the project. |
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