Which of the statements is most correct for project wacc

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Problem 1: A project has an up-front cost of $100,000. The project's WACC is 12% and its net present value is $10,000. Which of the following statements is most correct?

Option 1: The project's internal rate of return is greater than 12%.

Option 2: The project's modified internal rate of return is less than 12%.

Option 3: The project should be rejected since its return is less than the WACC.

Option 4: The project should be accepted whether it is independent or mutually exclusive with an other project.

Reference no: EM132724505

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