Bridgewater Fountains Is Considering Expanding Its Current Line of Business

question 170

Multiple Choice

Bridgewater Fountains is considering expanding its current line of business and has developed the following expected cash flows for the project. Should this project be accepted based on the discounting approach to the modified internal rate of return if the discount rate is 9.6 %? Why or why not?

• A) Yes; The IRR is 9.11 %.
• B) Yes; The IRR is 11.87 %.
• C) Yes; The IRR is 11.99 %.
• D) No; The IRR is 11.87 %.
• E) No; The IRR is 11.99 %.

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