Question
A project is estimated to have a NPV equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the following statements
A project is estimated to have a NPV equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the following statements is most correct?
A. The projects IRR is less than 15 percent.
B. The projects IRR is zero.
C. The projects IRR is greater than 15 percent.
D. The projects IRR is equal to 15 percent.
E. The project should be rejected because its IRR cannot be calculated.
Show all work please!
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
