You Are Considering an Investment for Which You Require a Rate

question 96

Multiple Choice

You are considering an investment for which you require a rate of return of 8.5 percent.The investment costs $67,400 and will produce.cash inflows of $25,720 for three years.Should you accept this project based on its internal rate of return? Why or why not?

• A)Yes; because the IRR is 9.51 percent
• B)Yes; because the IRR is 7.08 percent
• C)Yes; because the IRR is 6.67 percent
• D)No; because the IRR is 7.08 percent
• E)No'; because the IRR is 9.51 percent