When a project has multiple rates of return

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Reference no: EM13919651

When a project has multiple rates of return:

A. The analyst should choose the highest rate to compare with the firm’s cost of capital.

B. The analyst should choose the lowest rate to compare with the firm’s cost of capital.

C. The analyst should choose the rate that seems most “reasonable”, given the project’s cash flows, to compare with the firm’s cost of capital.

D. The analyst should compute the project’s net present value and accept the project if its NPV is greater than $0.

Reference no: EM13919651

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