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A project has cash flows of $35,000, $0, $10,000, and $42,000 for Years 0 to 3, respectively. The required rate of return is 15 percent.

A project has cash flows of $35,000, $0, $10,000, and $42,000 for Years 0 to 3, respectively. The required rate of return is 15 percent. Based on the internal rate of return of _____ percent, you should _____ the project.

Multiple Choice

  • 14.92; reject

  • 18.46; reject

  • 13.96; accept

  • 15.21; accept

  • 24.76; accept

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