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

question 57

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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