Consider a project with the following cash flows.   Year Cash Flow 0 -$15,000 1 41,000 2 -27,000     What’s the IRR of the project? If a firm’s cost of capital is 12%, should the firm accept the project?   Group of answer choices   10.6% and 62.7%; accept the project 10.6%; reject the project 62.7%; accept the project 10.6%, and 62.7%; reject the project

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
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Consider a project with the following cash flows.

 
Year
Cash Flow
0
-$15,000
1
41,000
2
-27,000
   

What’s the IRR of the project? If a firm’s cost of capital is 12%, should the firm accept the project?
 
Group of answer choices
 
10.6% and 62.7%; accept the project
10.6%; reject the project
62.7%; accept the project
10.6%, and 62.7%; reject the project
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