An INDEPENDENT project costs $2,000,000 and will return cash flows of $600,000 f

Question

An INDEPENDENT project costs $2,000,000 and will return cash flows of $600,000 for 5 years. If you knew the firm's cost of capital rate (discount rate), which of the following measures would you use to determine whether to clearly ACCEPT or REJECT the project? A) NPV B) IRR C) PI D) Payback period E) All of the above F) NPV and PI G) NPVPI and IRR H) None of the above An INDEPENDENT project costs $2,000,000 and will return cash flows of $600,000 for 5 years. If you knew the firm's cost of capital rate (discount rate), which of the following measures would you use to determine whether to clearly ACCEPT or REJECT the project? A) NPV B) IRR C) PI D) Payback period E) All of the above F) NPV and PI G) NPVPI and IRR H) None of the above An INDEPENDENT project costs $2,000,000 and will return cash flows of $600,000 for 5 years. If you knew the firm's cost of capital rate (discount rate), which of the following measures would you use to determine whether to clearly ACCEPT or REJECT the project? A) NPV B) IRR C) PI D) Payback period E) All of the above F) NPV and PI G) NPVPI and IRR H) None of the above

Explanation / Answer

By using discount rates:

We can find the NPV, IRR and Profitability Index.

Which will clearly help us to accept or reject the project.

Option G is the answer

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