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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?
The discount rate used in computing the net present value must have been less than 8.7%.
The discounted payback period will have to be less than 2.44 years.
The discount rate used to compute the profitability ratio was equal to the internal rate of return.
This project should be accepted based on the profitability ratio.
This project should be rejected based on the internal rate of return
As the risk of a stock investment increases, investors'
Determine how much additional money Hoffman could borrow at this time to invest in inventory and accounts receivable without violating the terms of its borrowing agreement.
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