You Are Considering an Investment with the Following Cash Flows $13.5 \%$

question 52

Multiple Choice

You are considering an investment with the following cash flows. If the required rate of return for this investment is $13.5 \%$ , should you accept it based solely on the internal rate of return rule? Why or why not?

• A)yes; because the IRR exceeds the required return.
• B)yes; because the IRR is a positive rate of return.
• C)no; because the IRR is less than the required return.
• D)no; because the IRR is a negative rate of return.
• E)You can not apply the IRR rule in this case because there are multiple IRRs.

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