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(3 marks) You have the chance to participate in a project that produces the following cash flows. CO C1 ? $0 $11,000 The NPV of
(3 marks) You have the chance to participate in a project that produces the following cash flows. CO C1 ? $0 $11,000 The NPV of the project is $4,090.91. If the opportunity cost of capital is 10%, a) you would accept the project, if the IRR is greater than the required return. b) you would not accept the project, as the largest cash inflow occurs at the end of the project. c) you would not be able to decide whether to accept the project, since discounted cash flow techniques fail to give us a clear decision. d) since we don't have the IRR we do not have enough information to make a decision on the project. e) b) and c) are true
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