You Are Considering a Project with Conventional Cash Flows and the Following

question 83

Multiple Choice

You are considering a project with conventional cash flows and the following characteristics:
Which of the following statements is correct given this information?
I.The discount rate used in computing the net present value was less than 11.63 percent.
II.The discounted payback period must be more than 2.98 years.
III.The discount rate used in the computation of the profitability ratio was 11.63 percent.
IV.This project should be accepted as the internal rate of return exceeds the required return.

• A) I and II only
• B) III and IV only
• C) I,II,and IV only
• D) II,III,and IV only
• E) I,II,III,and IV

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Definitions:

Cultural Development

The process through which societies evolve and change their cultural practices, beliefs, and values over time.

Good Rapport

The state of having a harmonious and positive relationship, often characterized by mutual understanding, trust, and empathy.

Client's Problem

An issue, difficulty, or challenge that a client is facing, which they seek to address or solve often with the help of a professional or expert.

Client's Expectations

Refers to what a client hopes to achieve or believes will happen as a result of engaging in a service or relationship, such as therapy.