A Project Has Cash Flows of -$148,400, $42,500, $87,300, and $43,200

question 53

Multiple Choice

A project has cash flows of -$148,400, $42,500, $87,300, and $43,200 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of ________ percent for this project, you should ________ the project.

• A) 7.91; accept
• B) 8.03; reject
• C) 6.67; reject
• D) 7.91; reject
• E) 8.03; accept

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