Your firm uses a 5-year payback period cut-off. Project X has a payback period of 4.25 years. Your manager still has decided to reject the project. Which of the following is NOT a good reason for rejecting Project X? Multiple Choice Project X has a negative NPV Project X has an IRR less than the hurdle rate Project X does not provide requisite liquidity Project X has a Pl of 0.82 The firm has scarcity of capital to accept such projects
Your firm uses a 5-year payback period cut-off. Project X has a payback period of 4.25 years. Your manager still has decided to reject the project. Which of the following is NOT a good reason for rejecting Project X? Multiple Choice Project X has a negative NPV Project X has an IRR less than the hurdle rate Project X does not provide requisite liquidity Project X has a Pl of 0.82 The firm has scarcity of capital to accept such projects
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
Section: Chapter Questions
Problem 1PS
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Your firm uses a 5-year payback period cut-off. Project X has a payback period of 4.25 years. Your manager still has decided to reject the project. Which of the following is NOT a good reason for rejecting Project X? Multiple Choice
Project X has a negative NPV
Project X has an IRR less than the hurdle rate
Project X does not provide requisite liquidity
Project X has a Pl of 0.82
The firm has scarcity of capital to accept such projects
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