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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?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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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?
Transcribed Image Text: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
Transcribed Image Text: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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