Question
Consider Project Theta, its time line of cash flows, and one of the project IRRs: Year....................0.............1............2............IRR Cash Flow......($200).....$850....($700)......15% What is the best decision for Project
Consider Project Theta, its time line of cash flows, and one of the project IRRs: Year....................0.............1............2............IRR Cash Flow......($200).....$850....($700)......15% 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 payback is short | ||||||||||||||||
b. | Accept the project because the NPV 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 IRR is greater than zeroConsider Project Theta, its time line of cash flows, and one of the project IRRs: Year....................0.............1............2............IRR Cash Flow......($200).....$850....($700)......15% What is the best decision for Project Theta (accept or reject) if the projects required rate of return is 15% and why?
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