Question
you are considering a project with positive yearly operating cash flows and the following characteristics. IRR = 10.5%, NPV=$1000, payback period= 2.75, prof index 1.15.
you are considering a project with positive yearly operating cash flows and the following characteristics. IRR = 10.5%, NPV=$1000, payback period= 2.75, prof index 1.15. which of the following statements is correct given this information?
1. the discount rate used in computing the net present value was more than 10.5%.
2. the discounted payback period must be less than 2.75 years.
3. the profitability index was calculated using a discount rate of 10.5%.
4. this project should be accepted as the internal rate of return exceeds the required return
options:
1 and 2 only
4 only
1, 2 and 4 only
3 and 4 only
1, 2 and 3 only
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