A Project Has an Initial Cash Inflow of $95,500 and Cash

question 31

Multiple Choice

A project has an initial cash inflow of $95,500 and cash flows of -$48,700 in Year 1 and -$57,200 in Year 2.The discount rate is 9 percent.Should this project be accepted or rejected based on IRR? Why?

• A)Accepted: because the IRR of 6.98 percent is less than the discount rate
• B)Accepted: because the IRR of 8.21 percent is less than the discount rate
• C)Accepted: because the IRR of 8.78 percent is less than the discount rate
• D)Rejected: because the IRR of 8.21 percent is less than the discount rate
• E)Rejected: because the IRR of 6.98 percent is less than the discount rate

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Definitions:

Observable Culture

The elements of culture such as rituals, symbols, and behaviors that can be seen and experienced in an organization.

Core Values

Fundamental beliefs or principles that guide the behavior and decision-making within an organization.

Pre-Observable Culture

Refers to the underlying beliefs, assumptions, and values that exist within an organization but are not immediately visible or easily detectable.

Workplace Spirituality

A framework within organizations that promotes employees' sense of purpose through work, respects their inner lives, and integrates their core values and beliefs into the workplace.