Pls complete step and explain formula too Your company has a project available withthe following cash flows: Year Cash Flow0 $81,300,1 21,400, 2 24,800, 330,600,4 25,900, 5 19,600 If the requiredreturn is 14 percent, should the project beaccepted 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.

IRR is one of the most used method of capital budgeting based on the time value of money and is…

Answered: Your company has a project available…

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

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Question

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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