Compute the IRR for Project X and Note Whether the Firm

question 45

Multiple Choice

Compute the IRR for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 9 percent. $$\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Time: } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flow: } & - 1,000 & - 75 & 100 & 100 & 0 & 2,000 \\\hline\end{array}$$

• A)9 percent, accept
• B)9 percent, reject
• C)16.61 percent, accept
• D)16.61 percent, reject

---

Definitions:

Treatment

The management and care of a patient or the combating of disease or disorder.

Depression

Depression is a common mental disorder characterized by persistent sadness, loss of interest or pleasure, feelings of guilt or low self-worth, disturbed sleep or appetite, low energy, and poor concentration.

Biological Model

An approach in psychology and medicine that focuses on biological factors as the main cause of mental disorders.

Nonbiological Factors

Influences on human behavior and health that are not genetic, such as environment, social conditions, and lifestyle.