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Your company has a project available with the following cash flows: Year 912345 Cash Flow -$ 81,100 21,500 25,000 30,800 26,000 19,800 If the required return is 14 percent, should the project be accepted based on the IRR?

Your company has a project available with the following cash flows: Year 912345 Cash Flow -$ 81,100 21,500 25,000 30,800 26,000 19,800 If the required return is 14 percent, should the project be accepted based on the IRR?

Essentials Of Investments
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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Your company has a project available with the following cash flows : If the required return is 14 percent should the project be accepted based on IRR?
Your company has a project available with the following cash flows: | Year | Cash Flow | |------|------------| | 0 | -$81,100 | | 1 | $21,500 | | 2 | $25,000 | | 3 | $30,800 | | 4 | $26,000 | | 5 | $19,800 | If the required return is 14 percent, should the project be accepted based on the IRR? **Multiple Choice:** - ○ Yes, because the IRR is 17.07 percent.
Transcribed Image Text:Your company has a project available with the following cash flows: | Year | Cash Flow | |------|------------| | 0 | -$81,100 | | 1 | $21,500 | | 2 | $25,000 | | 3 | $30,800 | | 4 | $26,000 | | 5 | $19,800 | If the required return is 14 percent, should the project be accepted based on the IRR? **Multiple Choice:** - ○ Yes, because the IRR is 17.07 percent.
- ○ Yes, because the IRR is 17.07 percent. - ○ No, because the IRR is 17.07 percent. - ○ No, because the IRR is 15.75 percent. - ○ Yes, because the IRR is 16.41 percent. - ○ Yes, because the IRR is 15.75 percent.
Transcribed Image Text:- ○ Yes, because the IRR is 17.07 percent. - ○ No, because the IRR is 17.07 percent. - ○ No, because the IRR is 15.75 percent. - ○ Yes, because the IRR is 16.41 percent. - ○ Yes, because the IRR is 15.75 percent.
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