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6. You require a 14 percent rate of return from an investment. The investment costs $58,000 and will produce cash inflows of $25,000 for 3

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6. You require a 14 percent rate of return from an investment. The investment costs $58,000 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not? A. Yes; because the IRR is 14.04 percent B. Yes; because the IRR is 14.65 percent C. Yes; because the IRR is 14.67 percent D. No; because the IRR is 13.04 percent E. None of the above 7. The dividend on T-Motors common stock will be $2 in 1 year, $4.25 in 2 years, and $6.00 in 3 years. You can sell the stock for $100 in 3 years. If you require a 11% return on your investment, how much would you be willing to pay for a share of this stock today? A. $75.45 B. $77.24 C. $81.52 D. $82.76 E. None of the above

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