You Are Considering a Project with the Following Data: Internal

question 105

Multiple Choice

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?

• A) The discount rate used in computing the net present value must have been less than 8.7%.
• B) The discounted payback period will have to be less than 2.44 years.
• C) The discount rate used to compute the profitability ratio was equal to the internal rate of return.
• D) This project should be accepted based on the profitability ratio.
• E) This project should be rejected based on the internal rate of return.

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Definitions:

Ethnic Groups

Communities or populations that share common cultural practices, ancestry, language, or other distinguishing characteristics.

Cultural Distinctiveness

The unique characteristics and qualities that differentiate one culture from another.

Cultural Influences

The impact that the shared beliefs, values, and practices of a society or group have on individuals' behaviors, perceptions, and interpretations.

Group Behavior

The manner in which individuals behave when they are part of a group, influenced by the dynamics and norms of the group.