Your company has a project available wit the following cash flows: Year Cash Flow 0 $81,300, 121,400,2 24,800,3 30,600, 4 25,900, 5 19,600 If the require return is 14 percent, should the project be

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Your company has a project available with
the following cash flows: Year Cash Flow
0 $81,300,1 21,400, 2 24,800, 3
30,600,4 25,900, 5 19,600 If the required
return is 14 percent, should the project be
accepted based on the IRR?
a) No, because the IRR is 16.66 percent.
b) Yes, because the IRR is 15.38 percent.
c) No, because the IRR is 15.38 percent.
d) Yes, because the IRR is 16.02 percent.
e) Yes, because the IRR is 16.66 percent.
Transcribed Image Text:Your company has a project available with the following cash flows: Year Cash Flow 0 $81,300,1 21,400, 2 24,800, 3 30,600,4 25,900, 5 19,600 If the required return is 14 percent, should the project be accepted based on the IRR? a) No, because the IRR is 16.66 percent. b) Yes, because the IRR is 15.38 percent. c) No, because the IRR is 15.38 percent. d) Yes, because the IRR is 16.02 percent. e) Yes, because the IRR is 16.66 percent.
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