Question

A project has cash flows of -$151,000, $43,700, $79,750, and $55,650 for Years 0 to 3,...

A project has cash flows of -$151,000, $43,700, $79,750, and $55,650 for Years 0 to 3, respectively. The required return is 8.3 percent. Based on the internal rate of return of ______ percent for this project, you should _____ the project.

Multiple Choice

  • 9.55; reject

  • 8.71; accept

  • 7.85; accept

  • 7.85; reject

  • 8.71; reject

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Answer #1

Ans 8.71; reject

The project must be rejected if IRR exceed required return

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