A Firm Is Considering a Project with the Following Cash

question 44

Multiple Choice

A firm is considering a project with the following cash flows: Time 0 = +$20,000,Years 1-5 = −$4,500.Should the project be accepted if the cost of capital is 10%?

• A) Yes; The IRR of the project is 4.06%.
• B) Yes; The IRR of the project is 12.5%.
• C) No; The IRR of the project is 4.06%.
• D) No; The IRR of the project is 12.5%.

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