Consider a project with the following cash flows. Year Cash Flow 0 -$17,000 1 45,000 2 -29,000 What’s the IRR of the project? If a firm’s cost of capital is 17%, should the firm accept the project? Group of answer choices 53.8%; accept the project 10.9% and 53.8%; accept the project 10.9%, and 53.8%; reject the project 10.9%; reject the project
Consider a project with the following cash flows. Year Cash Flow 0 -$17,000 1 45,000 2 -29,000 What’s the IRR of the project? If a firm’s cost of capital is 17%, should the firm accept the project? Group of answer choices 53.8%; accept the project 10.9% and 53.8%; accept the project 10.9%, and 53.8%; reject the project 10.9%; reject the project
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
Related questions
Question
Consider a project with the following cash flows.
What’s theIRR of the project? If a firm’s cost of capital is 17%, should the firm accept the project?
Year |
Cash Flow
|
0 |
-$17,000
|
1 |
45,000
|
2 |
-29,000
|
What’s the
Group of answer choices
53.8%; accept the project
10.9% and 53.8%; accept the project
10.9%, and 53.8%; reject the project
10.9%; reject the project
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