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You Are Considering an Investment for Which You Require a Rate

Question 96

Multiple Choice

You are considering an investment for which you require a rate of return of 8.5 percent.The investment costs $67,400 and will produce.cash inflows of $25,720 for three years.Should you accept this project based on its internal rate of return? Why or why not?


A) Yes; because the IRR is 9.51 percent
B) Yes; because the IRR is 7.08 percent
C) Yes; because the IRR is 6.67 percent
D) No; because the IRR is 7.08 percent
E) No'; because the IRR is 9.51 percent

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