A Financing Project Has an Initial Cash Inflow of $42,000

question 74

Multiple Choice

A financing project has an initial cash inflow of $42,000 and cash flows of −$15,600,−$22,200,and −$18,000 for Years 1 to 3,respectively.The required rate of return is 13 percent.What is the internal rate of return? Should the project be accepted?

• A)15.26 percent; accept
• B)15.26 percent; reject
• C)13.44 percent; reject
• D)13.44 percent; accept
• E)10.33 percent; accept