Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Pls complete step and explain formula too
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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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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