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A company with a required rate of return of 12 percent is considering a project with an RM40,000 initial investment. The net cash flows are expected to be RM15,000 per year over the four-year-life projects. Determine whether or not this project should be accepted based on internal rate of return techniques. Answer O IRR = 18.46 percent, accept the project IRR > required rate of return 12 percent O IRR = 17.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 18.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 17.45 percent, accept the project IRR > required rate of return 12 percent

A company with a required rate of return of 12 percent is considering a project with an RM40,000 initial investment. The net cash flows are expected to be RM15,000 per year over the four-year-life projects. Determine whether or not this project should be accepted based on internal rate of return techniques. Answer O IRR = 18.46 percent, accept the project IRR > required rate of return 12 percent O IRR = 17.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 18.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 17.45 percent, accept the project IRR > required rate of return 12 percent

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 12PROB
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#29 A company with a required rate of return of 12 percent is considering a project with an RM40,000 initial investment. The net cash flows are expected to be RM15,000 per year over the four-year-life projects. Determine whether or not this project should be accepted based on internal rate of return techniques. Answer O IRR = 18.46 percent, accept the project IRR > required rate of return 12 percent O IRR = 17.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 18.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 17.45 percent, accept the project IRR > required rate of return 12 percent
Transcribed Image Text:#29 A company with a required rate of return of 12 percent is considering a project with an RM40,000 initial investment. The net cash flows are expected to be RM15,000 per year over the four-year-life projects. Determine whether or not this project should be accepted based on internal rate of return techniques. Answer O IRR = 18.46 percent, accept the project IRR > required rate of return 12 percent O IRR = 17.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 18.45 percent, reject the project IRR < required rate of return 12 percent O IRR = 17.45 percent, accept the project IRR > required rate of return 12 percent
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