A Project Has an Initial Cash Inflow of $36,400 and a Cash

question 58

Multiple Choice

A project has an initial cash inflow of $36,400 and a cash outflow of $42,900 in Year 1.The discount rate is 20 percent.Should this project be accepted or rejected based on IRR? Why?

• A)Accepted: because the IRR of 17.86 percent is less than the discount rate
• B)Accepted: because the IRR of 15.15 percent is less than the discount rate
• C)Accepted: because the IRR of 11.23 percent is less than the discount rate
• D)Rejected: because the IRR of 17.86 percent is less than the discount rate
• E)Rejected: because the IRR of 15.15 percent is less than the discount rate

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Definitions:

Synthesis

The process of combining various chemical entities to form a more complex product, often utilized in the development of pharmaceuticals and various organic compounds.

Missing Reagents

The term used in organic chemistry to denote absent chemical substances required to carry out a specific reaction or synthesis process.

Michael Acceptor

A compound that can accept an electron-rich nucleophile, often characterized by an electron-withdrawing group adjacent to a carbon-carbon double bond.

Michael Reaction

A conjugate 1,4-addition reaction of a carbon nucleophile to an α,β-unsaturated carbonyl compound.