A Project Has an Initial Cash Inflow of $87,700 and Cash

question 13

Multiple Choice

A project has an initial cash inflow of $87,700 and cash flows of -$48,700 in Year 1 and -$57,200 in Year 2.The discount rate is 14 percent.Should this project be accepted or rejected based on IRR? Why?

• A)Accepted,because this is a financing project and the IRR is less than the discount rate.
• B)Rejected,because this is an investing project and the IRR is less than the discount rate.
• C)Accepted,because this is a financing project and the IRR is greater than the discount rate.
• D)Rejected,because this is an investing project and the IRR is greater than the discount rate.
• E)Accepted,because the IRR equals the discount rate.

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Definitions:

Symbolic Interaction

A distinct conceptualization that investigates how individuals create, maintain, and change social realities through the meanings they ascribe to symbols and interactions.

Cultural Hegemony

The dominance of a culturally diverse society by the ruling class who manipulate the culture of that society—the beliefs, explanations, perceptions, and values—so that their imposed, ruling-class worldview becomes the accepted cultural norm.

Dominant Culture

Refers to the established values, customs, social norms, and behaviors of the majority group within a society, which exert a strong influence over other groups.

Excessive Influence

Excessive influence refers to a situation or condition where an individual or group possesses a disproportionate amount of power or control over others, potentially leading to abuse or manipulation.