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Project X Has the Following Cash Flows: C0 = +2000

Question 54

Multiple Choice

Project X has the following cash flows: C0 = +2000, C1 = -1,150 and C2 = -1,150. If the
IRR of the project is 9.85% and if the cost of capital is 12%, you would:


A) Accept the project
B) Reject the project
This is a loan project therefore accept.

Correct Answer:

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