Benji's Has an Opportunity with an Initial Cash Flow of $48,900

question 5

Multiple Choice

Benji's has an opportunity with an initial cash flow of $48,900 and future cash flows of -$31,300 in Year 1 and -$21,600 in Year 2.The discount rate is 7 percent.Should this project be accepted or rejected? Why?

• A)Accepted;because the IRR of 5.28 percent is less than the discount rate
• B)Accepted;because the IRR of 5.77 percent is less than the discount rate
• C)Rejected: because the IRR of 5.28 percent is less than the discount rate
• D)Rejected;because the IRR of 5.77 percent is less than the discount rate
• E)Rejected;because the IRR of 6.01 percent is less than the discount rate

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Definitions:

Dermatology

The branch of medicine dealing with the skin, nails, and hair, and their diseases.

Centigrade

A temperature scale where 0 degrees is the freezing point of water, and 100 degrees is the boiling point, also known as Celsius.

ICD-10-CM

The International Classification of Diseases, Tenth Revision, Clinical Modification; a system used by healthcare providers to classify and code all diagnoses, symptoms, and procedures.

SOAP Notes

A method of documentation employed by healthcare providers to write out notes in a patient's chart, consisting of subjective information, objective information, assessment, and plan.