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    Business
  3. Study Set
    Principles of Corporate Finance
  4. Exam
    Exam 5: Net Present Value and Other Investment Criteria
  5. Question
    Project X Has the Following Cash Flows: C<sub>0</sub> = +2,000,C<sub>1</sub>
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Project X Has the Following Cash Flows: C0 = +2,000,C1

Question 19

Question 19

Multiple Choice

Project X has the following cash flows: C0 = +2,000,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.

Correct Answer:

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