A Firm Considers a Project with the Following Cash Flows

question 98

Multiple Choice

A firm considers a project with the following cash flows: time-zero = +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%.