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You are considering a project with the following data: Internal rate of return 8.7% Profitability ratio 98 Net present value -$393 Payback period 2.44 years

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You are considering a project with the following data: Internal rate of return 8.7% Profitability ratio 98 Net present value -$393 Payback period 2.44 years Required return 9.5% Which one of the following is correct given this information? O The discount rate used in computing the net present value must have been less than 8.7%. O The payback period suggests this is a good investment. The discount rate used to compute the profitability index was equal to the internal rate of return. O This project should be accepted based on the profitability index. This project should be rejected based on the internal rate of return

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