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A firm evaluates a project by using the Internal Rate of Return (IRR) decision rule. The hurdle rate (i.e., the minimum IRR to accept a
A firm evaluates a project by using the Internal Rate of Return (IRR) decision rule. The hurdle rate (i.e., the minimum IRR to accept a project) is 10%,. The project's cash flows are reported in the following table. 2 Year Cash Flows 0 -10,000 4 8,000 4,000 3 10,000 4,500 The IRR of this project is and this firm should this project. A) 9.34%; reject B) 9.34%; accept C) 44.93%; reject D) 44.93%; accept E) 94.43%; reject OF) 94.43%; accept
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