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

question 109

Multiple Choice

Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: C₀ = -$6,000, C₁ = $3,300, C₂ = $3,300.

• A) Accept; because the IRR exceeds the opportunity cost
• B) Reject; because the opportunity cost exceeds the IRR
• C) Accept; because the opportunity cost exceeds the IRR
• D)Reject; because the IRR exceeds the opportunity cost