You Are Considering a Project with the Following Data

question 88

Multiple Choice

You are considering a project with the following data: 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.

---

Definitions:

Promotion

Activities designed to increase the sales of a product or service, often through advertising or incentives.

Sales Promotion

Marketing activities aimed at boosting sales and strengthening brand loyalty by offering short-term incentives to customers.

Promotional Mix

A combination of marketing tools, including advertising, sales promotion, public relations, personal selling, and direct marketing, used to achieve communication objectives.

Direct Marketing

A form of advertising where companies communicate directly with consumers through mail, email, texts, and other channels, bypassing intermediary media.