Your company has a project available with the following cash flows: Year Cash Flow 0 1 2 3 30,400 25,800 19,400 If the required return is 13 percent, should the project be accepted based on the IRR? 4 5 Multiple Choice O -$82,500 21,300 24,600 O O Yes, because the IRR is 15.10 percent. No, because the IRR is 15.70 percent. Yes, because the IRR Is 15.70 percent. Yes, because the IRR is 14.49 percent. No, because the IRR IS 14.49 percent.
Your company has a project available with the following cash flows: Year Cash Flow 0 1 2 3 30,400 25,800 19,400 If the required return is 13 percent, should the project be accepted based on the IRR? 4 5 Multiple Choice O -$82,500 21,300 24,600 O O Yes, because the IRR is 15.10 percent. No, because the IRR is 15.70 percent. Yes, because the IRR Is 15.70 percent. Yes, because the IRR is 14.49 percent. No, because the IRR IS 14.49 percent.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Your company has a project available with the following cash flows:
Year
Cash Flow
-$ 82,500
1
21,300
TT
2
24,600
3
30,400
4
25,800
5
19,400
If the required return is 13 percent, should the project be accepted based on the IRR?
Multiple Choice
Yes, because the IRR IS 15.10 percent.
No, because the IRR IS 15.70 percent.
Yes, because the IRR IS 15.70 percent.
Yes, because the IRR IS 14.49 percent.
No, because the IRR IS 14.49 percent.
Transcribed Image Text:Filter Corporation has a project available with the following cash flows:
Year
0
1
2
3
4
What is the project's IRR?
Multiple Choice
O
Cash Flow
-$ 13,700
6,600
7,900
4,100
3,700
O
C
27.24%
28.33%
29.05%
26.15%
30.51%
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