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A project would be acceptable if: a. The payback is greater than the discounted

ID: 2661772 • Letter: A

Question

A project would be acceptable if:
a. The payback is greater than the discounted equivalentannual annuity. b. The equivalent annual annuity is greater than or equal tothe firm's discount rate. c. The profitability index is greater than the net presentvalue. d. None of the above. A project would be acceptable if:
a. The payback is greater than the discounted equivalentannual annuity. b. The equivalent annual annuity is greater than or equal tothe firm's discount rate. c. The profitability index is greater than the net presentvalue. d. None of the above.

Explanation / Answer

Answer is (d) None of the above.
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