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Gilbert Inc. is considering a capital budgeting project. The initial cash outflow is $170,000 and cash inflow at the year-end of each of the following
Gilbert Inc. is considering a capital budgeting project. The initial cash outflow is $170,000 and cash inflow at the year-end of each of the following four years is $60,750. The firm has a WACC of 14%. Based on the given information, which of the following statements is correct? The project's internal rate of return (IRR) must be less than 14%. O a. Ob. The project is acceptable as the net present value of the project is positive. The project's discounted payback period must be greater than its economic life. C. d. The project is not acceptable as the net present value is less than the difference in the total cash inflow and cash outflow
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