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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.

Reject the project because the NPV is less than zero

b.

Accept the project because the IRR is greater than zero

c.

Accept the project because the NPV is greater than zero

d.

Accept the project because the payback is short

e.

Reject the project because the IRR is less than the required rate of return

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