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:

Environmental Factors

External elements or conditions that affect living organisms and ecosystems, including natural phenomena, human activities, and sociopolitical context.

Seating Arrangements

The organization of where people sit in a workplace, classroom, or event, which can affect communication, collaboration, and social dynamics.

Leader-Member Exchange

A theory describing how leaders develop relationships with team members, leading to the creation of in-groups and out-groups within the same team, influencing performance and workplace dynamics.

Differential Treatment

The act of treating individuals differently based on specific factors like age, race, gender, etc., rather than on merit or behavior.