Question
A project is estimated to have a net present value equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the
A project is estimated to have a net present value equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the following statements is most correct? The projects IRR is greater than 15 percent.
(a) The projects IRR is equal to 15 percent.
(b) The projects internal rate of return (IRR) is less than 15 percent.
(c) The project should be rejected because its IRR cannot be calculated.
(d) The projects IRR is zero.
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Corporate Financial Management
Authors: Glen Arnold, James Pickford
2nd Edition
0582821762, 978-0582821767
