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

---

Definitions:

Variables

Symbols used to represent unspecified numbers or values.

Ordered Triple

A set of three numbers used to locate a point in three-dimensional space.

Linear Equations

Mathematical expressions representing straight lines, typically written in the form Ax + By + C = 0.

Triangles

Geometric figures with three sides and three angles.