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# Correct statement

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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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#### Solution Preview

The project should be rejected since its return is less than the WACC.

This is not correct. Since the NPV is postive, the IRR ...

#### Solution Summary

The solution explains the correct statement from among the given alternatives

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