Estimated the net present value of a project

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Reference no: EM131612184

An analyst has conducted thorough analysis and has estimated the net present value (NPV) of a project to be $2.3 million, the internal rate of return (IRR) to be 11%, and the payback period to be 4.24 years.

Should the company recommend that the capital project be accepted?

A. No, because the IRR is less than 15%.

B. Yes, because the lRR is greater than 10%.

C. No, because the payback period is less than 5 years.

D. Yes, because the NPV is greater than zero.:

Reference no: EM131612184

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