Idaho Industries Inc

question 85

Multiple Choice

Idaho Industries Inc.is considering a project that has an initial after-tax outlay or after-tax cost of $450,000.The respective future cash inflows from its five-year project for years 1 through 5 are $95,000 each year.Idaho expects an additional cash flow of $60,000 in the fifth year.The firm uses the IRR method and has a hurdle rate of 10%.Will Idaho accept the project?

• A)Idaho accepts the project because it has an IRR greater than 10%.
• B)Idaho rejects the project because it has an IRR less than 10%.
• C)Idaho accepts the project because it has an IRR greater than 5%.
• D)There is not enough information to answer this question.

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Definitions:

Needs Assessment

A systematic process for determining and addressing needs, or gaps between current conditions and desired conditions.

Focus Groups

A research method involving guided discussions with a group of people to gather their opinions on a specific subject.

Normative Needs

Needs that are considered standard or expected within a given cultural or societal context.

Deprivation

The state of lacking or being denied important physical, social, or emotional resources, which can significantly impact well-being and development.