Suppose a Particular Investment Project Will Require an Initial Cash

question 38

Multiple Choice

Suppose a particular investment project will require an initial cash outlay of $1,000,000 and will generate a cash inflow of $500,000 in each of the next three years.What is the project's IRR? Suppose a company's hurdle rate is 15%,should it accept the project?

• A) 23%; reject the project
• B) 23%; accept the project
• C) 15%; reject the project
• D) 15%; accept the project