A project has an upfront cost of $100,000. The projects WACC is 12% and it’s net present value is $10,000. Which of the following statements is most correct? The project should be rejected since it’s return is less than the WACC The projects internal rate of return is greater than 12% The projects modified internal rate of return is less than 12% All of the above None of the above

A project has an upfront cost of $100,000. The projects WACC is 12% and it’s net present value is $10,000. Which of the following statements is most correct? The project should be rejected since it’s return is less than the WACC The projects internal rate of return is greater than 12% The projects modified internal rate of return is less than 12% All of the above None of the above

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 2P

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