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Capital Budgeting Techniques ( 1 2 points, 4 points each ) You are considering a project that costs $ 1 0 0 , 0 0

Capital Budgeting Techniques (12 points, 4 points each) You are considering a project that costs $100,000 today but will provide you with $50,000 per year for 3 years. The firms required rate of return (WACC) on the project is 10%. The IRR is closest to _________________ and you should (invesr or not invest) in the project _______________________.
10%, either yes or no, the company would be indifferent
23.38%, yes
24.78%, yes
8.89%; no

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