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If the present value payback period is less than the life of the project, one may conclude that: The project's accounting (book) rate of return
If the present value payback period is less than the life of the project, one may conclude that:
The project's accounting (book) rate of return exceeds the discount (hurdle) rate. | ||
The project's internal rate of return (IRR) is less than the discount (hurdle) rate. | ||
The project's IRR is equal to the weighted-average cost of capital. | ||
The project is not desirable in a present-value sense. | ||
The project's net present value (NPV) is positive. |
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