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Consider Project Theta, its time line of cash flows, and one of the project IRRs: What is the best decision for Project Theta (accept or
Consider Project Theta, its time line of cash flows, and one of the project IRRs: What is the best decision for Project Theta (accept or reject) if the projects required rate of return is 15% and why?
a. Accept the project because the NPV is greater than zero
b. Accept the project because the IRR is greater than zero
c. Reject the project because the IRR is less than the required rate of return
d. Reject the project because the NPV is less than zero
e. Accept the project because the payback is short
IRR Year Cash Flow ($200) $850 $700 11.5%Step by Step Solution
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