Question
A project has cash flows of +$200, -$180, -$40 in consecutive years. The prevailing interest rate is 5%. Should you take this project? Group of
A project has cash flows of +$200, -$180, -$40 in consecutive years. The prevailing interest rate is 5%. Should you take this project? Group of answer choices
No, since NPV is -$7.71
Yes, since the Payback Period is just 2 years
Yes, since IRR is 8.44%, exceeding the 5%
No, since IRR is 8.44%, exceeding the 5% Impossible to determine;
Not enough information is given
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Finance For Non Financial Managers
Authors: Pierre G. Bergeron
5th Edition
0176104070, 9780176104078
