Consider a Project with the Following Cash Flows

question 13

Multiple Choice

Consider a project with the following cash flows.

What's the IRR of the project? If a firm's cost of capital is 15%,should the firm accept the project?

• A) 50%; accept the project
• B) 12.5%; reject the project
• C) 12.5% and 50%; accept the project
• D) 12.5%, and 50%; reject the project