Evaluate the Following Project Using an IRR Criterion, Based on an Opportunity

question 115

Multiple Choice

Evaluate the following project using an IRR criterion, based on an opportunity cost of 10 percent: CF0 = -6,000, CF1 = +3,300, CF2 = +3,300.

• A)accept, since IRR exceeds opportunity cost.
• B)reject, since opportunity cost exceeds IRR.
• C)accept, since opportunity cost exceeds IRR.
• D)reject, since IRR exceeds opportunity cost.

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Definitions:

Unconstitutional

Something that is not in accordance with the constitution of a country or government, and therefore is considered illegal or void.

Federal Assistance

Refers to financial support provided by the federal government to individuals, organizations, or state and local governments, typically for services, projects, or programs that further public objectives.

Steamboat

A boat powered by steam engines, significant in the 19th century for transforming transportation, commerce, and navigation on rivers and lakes.

Clermont

The name of the first successful steamboat, developed by Robert Fulton in 1807, which significantly advanced riverine transportation.