Consider a project with the following cash flows. Year Cash Flow 0 -$15,000 1 41,000 2 -27,000 What’s the IRR of the project? If a firm’s cost of capital is 12%, should the firm accept the project? Group of answer choices 10.6% and 62.7%; accept the project 10.6%; reject the project 62.7%; accept the project 10.6%, and 62.7%; reject the project

Consider a project with the following cash flows. Year Cash Flow 0 -$15,000 1 41,000 2 -27,000 What’s the IRR of the project? If a firm’s cost of capital is 12%, should the firm accept the project? Group of answer choices 10.6% and 62.7%; accept the project 10.6%; reject the project 62.7%; accept the project 10.6%, and 62.7%; reject the project

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 14P

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