A project requires an initial investment of $1,000 and will pay only one payment of $1,160 in
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Question:
A project requires an initial investment of $1,000 and will pay only one payment of $1,160 in one year. Assuming a firm's required rate of return is 15%, should the firm accept the project according to the IRR rule?
a. Yes, the IRR is greater than the required rate of return
b. There isn't enough information to determine if the project should be accepted or rejected
c. No, the IRR is less than the required rate of return
d. The firm should be indifferent toward the decision
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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