You are analyzing a project and have gathered the following data. Year Cash Flow -$37,500 15,240 1 13,750 18,730 Required payback period: 2.40 years Required return: 15 percent Based on the internal rate of return of percent for this project, you should the project. O 10.71 percent; accept O 13.48 percent; reject O 12.60 percent; accept O 10.71 percent; reject O 12.60 percent; reject

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 10PROB
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Please answer the following multiple choice 

 

You are analyzing a project and have gathered the following data.
Year
Cash Flow
-$37,500
15,240
1
2
13,750
18,730
Required payback period: 2.40 years
Required return: 15 percent
Based on the internal rate of return of
percent for this project, you should
the project.
---- -
O 10.71 percent; accept
O 13.48 percent; reject
O 12.60 percent; accept
O 10.71 percent; reject
O 12.60 percent; reject
Transcribed Image Text:You are analyzing a project and have gathered the following data. Year Cash Flow -$37,500 15,240 1 2 13,750 18,730 Required payback period: 2.40 years Required return: 15 percent Based on the internal rate of return of percent for this project, you should the project. ---- - O 10.71 percent; accept O 13.48 percent; reject O 12.60 percent; accept O 10.71 percent; reject O 12.60 percent; reject
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