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
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
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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Pls complete step and explain formula too
Transcribed Image Text: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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