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A project has an up-front cash outflow of $100,000. The project's WACC is 12 percent and its net present value is $10,000. Which of the following statements is most correct?
The project should be rejected since its return is less than the WACC.
The project s internal rate of return is greater than 12 percent.
The project s modified internal rate of return is less than 12 percent.
All of the above answers are correct.
None of the above answers is correct.
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The solution explains the correct statement from among the given alternatives
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The project should be rejected since its return is less than the WACC.
This is not correct. Since the NPV is postive, the IRR ...
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