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Need some assistance e that your organization's chief financial officer (CFO) has just completed a presentation to board of trustees concerning the analysis of a
Need some assistance
e that your organization's chief financial officer (CFO) has just completed a presentation to board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated that the project had a net present value (NPV) of $786,339 and an internal rate of return (IRR) of 17.3 percent. Based on its risk, the project was judged to have a cost of capital of 13 percent. Which of the following statements is most correct? O A. The project is financially acceptable because its NPV is positive. O B. The project is financially acceptable because its IRR is greater than zero O C. The project is financially unacceptable because its NPV is less than the project's initial investment cost 0 D. The project is financially unacceptable because its IRR is greater than its cost of capital. O E. The project is financially unacceptable, but it may have sufficient social value to make it worthwhile Reset Selection hp Step by Step Solution
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