An Investment Has the Following Cash Flows

question 82

Multiple Choice

An investment has the following cash flows.Should the project be accepted if it has been assigned a required return of 9.5%? Why or why not?

• A)yes;because the IRR exceeds the required return by about 0.39%.
• B)yes;because the IRR is less than the required return by about 3.9%.
• C)yes;because the IRR is positive.
• D)no;because the IRR exceeds the required return by about 3.9%.
• E)no;because the IRR is 9.89%.

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Definitions:

Ethical Issues

Challenges or dilemmas that involve making decisions between what is right and wrong, often encountered in professional fields.

Morals

Pertaining to distinction of “right” and “wrong.”

Standards Of Conduct

Ethical and professional guidelines that govern behavior in a specific context or profession.

Professional Ethics

Moral principles that govern the behavior of professionals in their fields.