Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of 15.1 percent

Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of 15.1 percent, and a payback period of 3.2 years. The required return is 14.5 percent and the required payback period is 3.0 years. Which one of the following statements correctly applies to this project?    A.  The net present value indicates accept while the internal rate of return indicates reject. B.  Payback indicates acceptance. C.  The payback decision rule could override the accept decision indicated by the net present value. D.  The payback rule will automatically be ignored since both the net present value and the internal rate of return indicate an accept decision. E.  The net present value decision rule is the only rule that matters when making the final decision. Refer to section 9.7

55.

You are considering a project with conventional cash flows and the following characteristics:     Which of the following statements is correct given this information? I. The discount rate used in computing the net present value was less than 11.63 percent. II. The discounted payback period must be more than 2.98 years. III. The discount rate used in the computation of the profitability ratio was 11.63 percent. IV. This project should be accepted as the internal rate of return exceeds the required return.    A.  I and II only B.  III and IV only C.  I, II, and IV only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 9.7

56.

Which of the following are definite indicators of an accept decision for an independent project with conventional cash flows? I. positive net present value II. profitability index greater than zero III. internal rate of return greater than the required rate IV. positive internal rate of return    A.  I and III only B.  II and IV only C.  I, II, and III only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 9.7