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A firm considers a project with the following cash flows: time-zero = -120,000, years 1-4 = 55,500, and the fifth year -90,000. Should the project
A firm considers a project with the following cash flows: time-zero = -120,000, years 1-4 = 55,500, and the fifth year -90,000. Should the project be accepted if the cost of capital is 9%?
a. | No, the PI of the project is less than 1 | |
b. | No, the MIRR of the project is 9.16%. | |
c. | Yes, the IRR of the project is 10.04%. | |
d. | Yes, the NPV of the project is $1,310.63 |
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