Multiple Choice
A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years. If the firm's required return or cost of capital is 15%, should it accept the project using the IRR as a decision criteria?
A) yes
B) no
C) only if the NPV is less than 1
D) only if the PI is negative
Correct Answer:
Verified
Correct Answer:
Verified
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