Grace Corp

Grace Corp. ,whose required rate of return is 10%,is considering the purchase of a new piece of equipment.The internal rate of return of the project,which has a life of 8 years,is 12%.The project would have:

A) an accounting rate of return greater than 10%.
B) a payback period more than 8 years.
C) a net present value of zero.
D) a net present value greater than zero.

Correct Answer:

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