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:

Death

The cessation of all biological functions that sustain a living organism.

Irreversible

Unable to be undone or altered.

Piaget

A Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development that describes how children's intellectual abilities evolve through four stages.

Cognitive Development

The growth and change in mental capabilities over time, including learning, memory, problem-solving, and decision-making.