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6) Your company has a project available with the following cash flows: Year Cash Flow -$81,900 21,100 24.200 30,000 25,600 19,000 If the required return

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6) Your company has a project available with the following cash flows: Year Cash Flow -$81,900 21,100 24.200 30,000 25,600 19,000 If the required return is 13 percent, should the project be accepted based on the IRR? A) Yes, because the IRR is 14.26 percent. B) Yes, because the IRR is 15.44 percent. C) Yes, because the IRR is 14.85 percent. D) No, because the IRR is 15.44 percent. E) No, because the IRR is 14.26 percent 7) A project has the following cash flows: Year 0 1 Cash Flows -$129,100 34.800 63.800 51.600 28,100 The required return is 9.6 percent. What is the profitability index for this project? A) 1.044 B).798 C).997 D) 1.253 E) 1.149

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