Your company has a project avallable with the following cash flows: TT Year Cash Flow -$80,700 21,700 25,400 31,200 26,200 20,200 4 5 If the required return iIs 15 percent, should the project be accepted based on the IRR? Multiple Cholce No, because the IRR IS 16.51 percent. Yes, because the IRR IS 17.88 percent. Yes, because the IRR Is 17.19 percent. Yes, because the IRR Is 16.51 percent. No, because the IRR Is 17.88 percent.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Your company has a project available with the following cash flows:
Year
Cash Flow
-$80,700
21,700
25,400
31,200
3
4
26,200
20,200
If the required return is 15 percent, should the project be accepted based on the IRR?
Multiple Cholce
No. because the IRR Is 16.51 percent.
Yes, because the IRR Is 17.88 percent.
Yes, because the IRR Is 17.19 percent.
Yes, because the IRR Is 16.51 percent.
No, because the IRR Is 17.88 percent.
Transcribed Image Text:Your company has a project available with the following cash flows: Year Cash Flow -$80,700 21,700 25,400 31,200 3 4 26,200 20,200 If the required return is 15 percent, should the project be accepted based on the IRR? Multiple Cholce No. because the IRR Is 16.51 percent. Yes, because the IRR Is 17.88 percent. Yes, because the IRR Is 17.19 percent. Yes, because the IRR Is 16.51 percent. No, because the IRR Is 17.88 percent.
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