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An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14.5 %? Why or

An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14.5 %? Why or why not?

Year Cash Flow
0 -$32,000
1 $9,500
2 $15,700
3 $17,100

Multiple Choice

  • No; because the IRR is 14.3 %.

  • Yes; because the IRR is 13.9 %.

  • Yes; because the IRR is 14.8 %.

  • No; because the IRR is 13.9 %.

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