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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Definitions:

Africa

The second-largest continent in the world, known for its vast cultural, linguistic, and ecological diversity, comprising over 50 countries.

Dred Scott Decision

An 1857 U.S. Supreme Court ruling that African Americans, whether enslaved or free, could not be American citizens and therefore had no standing to sue in federal court, further inflaming the pre-Civil War national debate over slavery.

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A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman in the 19th century, who escaped from slavery.