Question
Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of15.1 percent, and a payback period of 3.2 years. The
Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of15.1 percent, and a payback period of 3.2 years. The required return is 14.5 percent and therequired payback period is 3.0 years. Which one of the following statements correctly appliesto this project?A.The net present value indicates accept while the internal rate of return indicates reject.B.Payback indicates acceptance.C.The payback decision rule could override the accept decision indicated by the net presentvalue.D.The payback rule will automatically be ignored since both the net present value and theinternal rate of return indicate an accept decision.E.The net present value decision rule is the only rule that matters when making the final decision, is that C?
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