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Weezer, Inc. is considering a project that has an IRR of 16.1 percent, a payback period of 4.2 years, and a NPV of $38,400. The

Weezer, Inc. is considering a project that has an IRR of 16.1 percent, a payback period of 4.2 years, and a NPV of $38,400. The required payback period is 4.0 years and the required return is 15.5 percent. Which of the following statements correctly applies to this project?

  • Payback indicates acceptance.

  • The payback decision rule could override the accept decision indicated by the net present value.

  • The net present value decision rule is the only rule that matters when making the final decision.

  • The payback rule will automatically be ignored since both the net present value and the internal rate of return indicate an accept decision.

  • The net present value indicates accept while the internal rate of return indicates reject.

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