If the Present Value Payback Period Is Less Than the Life

Multiple Choice

If the present value payback period is less than the life of the project, one may conclude that:

A) The project's internal rate of return (IRR) is less than the discount (hurdle) rate.
B) The project's accounting (book) rate of return exceeds the discount (hurdle) rate.
C) The project is not desirable in a present-value sense.
D) The project's net present value (NPV) is positive.
E) The project's IRR is equal to the weighted-average cost of capital.