Your company has a project available with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$80,900 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?

Your company has a project available with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$80,900 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Your company has a project available with the following cash flows:
Year
0
1
2345
Cash Flow
-$80,900
21,600
25,200
31,000
26,100
20,000
If the required return is 15 percent, should the project be accepted based on the IRR?

Year
0
123
3
st
4
5
Cash Flow
-$80,900
21,600
25,200
31,000
26,100
20,000
If the required return is 15 percent, should the project be accepted based on the IRR?
Multiple Choice
Yes, because the IRR is 16.13 percent.
Yes, because the IRR is 16.80 percent.
No, because the IRR is 16.13 percent.
Yes, because the IRR is 17.47 percent
No, because the IRR is 17.47 percent

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