Suppose your friend came to see you with an opportunity to invest in a project that generates $5,000 in the first and the third year, and $3,000 in the second year is.The initial investment required for the project is $10,000.If the risk-adjusted rate is 15%, she insists that the project is worth the investment.Which method is your friend using?
A) Internal rate of return
B) Payback period
C) Net present value
D) Profitability index
Correct Answer:
Verified
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