ThreeRivers Corp. is considering the purchase of a new piece of equipment with a life of 18 years. The internal rate of return of the project is 20%. ThreeRivers has a required rate of return (hurdle rate) of 15%.

The project would have:

Multiple Choice

• a payback period more than 18 years.

• a net present value greater than zero.

• a net present value of zero.

• an accounting rate of return greater than 15%.