Multiple Choice
Project X has the following cash flows: C0 = +2000, C1 = -1,300 and C2 = -1,500. If the
IRR of the project is 25% and if the cost of capital is 18%, you would:
A) Accept the project
B) Reject the project
This is a loan project therefore reject.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q56: The cost of a new machine is
Q57: Driscoll Company is considering investing in a
Q58: If an investment project (normal project) has
Q59: The survey of CFOs indicates that NPV
Q60: Which of the following investment rules has
Q62: The following are disadvantages of using the
Q65: The IRR is defined as:<br>A) The discount
Q66: What would be the weighted average profitability
Q69: The IRR rule states that firms should
Q73: Soft rationing may be used to control