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A proposed project has the following cash flows. With an IRR hurdle rate of 6%, what should you do? Year 0 1 2 3 4
A proposed project has the following cash flows. With an IRR hurdle rate of 6%, what should you do?
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | -100 | -2000 | 300 | 400 | 500 | 600 | 700 |
A. IRR < hurdle rate; Reject
B. IRR > hurdle rate; Accept
C. IRR > hurdle rate; Reject
D. IRR < hurdle rate; Accept
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