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8. You require a 14 percent rate of return from an investment. The investment costs $58,000 and will produce cash inflows of $27,000 every year

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8. You require a 14 percent rate of return from an investment. The investment costs $58,000 and will produce cash inflows of $27,000 every year 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 18.76 percent D. No; because the IRR is 18.76 percent E. None of the above 9. The dividend on AT's common stock will be $2 in 1 year, S4 in 2 years, and $6.00 in 3 years. You can sell the stock for $100 in 3 years. If you require a 6% 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. $94.45 10. The net present value (NPV) rule can be best stated as: A) An investment should be rejected if the NPV is negative. B) An investment should be rejected if the NPV is positive and accepted if it is negative. C) An investment with greater cash inflows than casbroutflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted. D) An investment should be accepted if the NPV is positive and rejected if the NPV is zero or negative

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