An Investment Has the Following Cash Flows and a Required

question 63

Multiple Choice

An investment has the following cash flows and a required return of 13 percent.Based on IRR, should this project be accepted? Why or why not?

• A)No; The IRR exceeds the required return by about 0.06 percent.
• B)No; The IRR is less than the required return by about 1.53 percent.
• C)Yes; The IRR exceeds the required return by about 0.06 percent.
• D)Yes; The IRR exceeds the required return by about 1.53 percent.
• E)Yes; The IRR is less than the required return by about 0.06 percent.

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Definitions:

Stressful Event

Any event or situation that causes significant anxiety, pressure, or strain to an individual.

Final Play

The last action or series of actions in a game that determine the outcome, especially in sports.

Pressure

The use of persuasion, influence, or intimidation to make someone do something, or the physical force exerted on or against an object.

Football Team

A group of players forming one side in a competitive game of football, where the team works together to score goals against the opposition.