Lucie Is Reviewing a Project with an Initial Cost of $38,700

question 35

Multiple Choice

Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800,$16,400,and $21,700 for Years 1 to 3,respectively.Should the project be accepted if it has been assigned a required return of 9.75 percent? Why or why not?

• A)Yes; because the IRR exceeds the required return by .34 percent
• B)Yes; because the IRR is less than the required return by .28 percent
• C)Yes; because the IRR exceeds the required return by .28 percent
• D)No; because the IRR exceeds the required return by .34 percent
• E)No; because the IRR is only 9.69 percent

---

Definitions:

Liberties

The absence of constrictive control by governing bodies on an individual’s lifestyle, behaviors, or political perspectives in a societal setting.

Anglicization

The process of adopting English culture, language, or norms, often in the context of colonized societies integrating with or being influenced by English settlers or governance.

Colonial Elites

Individuals or families of significant economic, social, and political influence during the colonial period, often landowners or officials.

British

Relating to Great Britain or the United Kingdom, including its people, culture, and historical influences.