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IRR 12%
ROCE16%
payback period= 4 yearswhich of the following statements is correct?
ans: IRR>cost of capital so the project should go ahead.
My doubt is sir where is the cost of capital mentioned? I just dont understand the correct answer
Assuming that you have typed out the whole question correctly, then it is impossible to say whether or not the statement is correct because we need to know the cost of capital.
If it is a question in the BPP Revision Kit, then say which one so I can check the wording myself.
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