Multiple Choice
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Use the IRR decision rule to evaluate this project; should it be accepted or rejected?
A) -4.95 percent, reject
B) 4.95 percent, accept
C) -23.18 percent, reject
D) 23.18 percent, accept
Correct Answer:

Verified
Correct Answer:
Verified
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