A Project Has an Initial Cash Inflow of $40,800 and a Cash

question 65

Multiple Choice

A project has an initial cash inflow of $40,800 and a cash outflow of $44,900 in Year 1.The discount rate is 10 percent.Should this project be accepted or rejected based on IRR? Why?

• A)Accepted,because the IRR is less than the discount rate.
• B)Rejected,because the IRR is less than the discount rate.
• C)Accepted,because the IRR is greater than the discount rate.
• D)Rejected,because the IRR is greater than the discount rate.
• E)Accepted,because the IRR equals the discount rate.

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