A project has an up-front cost of sh.1000, 000. The project's WACC is 12% and its net present value is sh.100, 000. Which of the following statements is most correct?   Select one: A. The project should be rejected since its return is less than the WACC B. The project's internal rate of return is greater than 12 percent C. The project's modified internal rate of return is less than 12 percent D. All of the statements above are correct E. None of the statements above is correct

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A project has an up-front cost of sh.1000, 000. The project's WACC is 12% and its net present value is sh.100, 000. Which of the following statements is most correct?


 

Select one:
A. The project should be rejected since its return is less than the WACC
B. The project's internal rate of return is greater than 12 percent
C. The project's modified internal rate of return is less than 12 percent
D. All of the statements above are correct
E. None of the statements above is correct
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