Riskless project requires an initial investment

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Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later. Assuming a risk-free interest rate of 5%, which of the following statements about the project is NOT true?

- The net present value of the project is positive.

- The IRR is greater than 50 percent.

- The accounting rate of return on the project is positive.

- The payback period is less than 2 years.

Reference no: EM131548277

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