Question
Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: C 0 = -6,000, C 1 = +3,300, C 2
Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: C0= -6,000, C1= +3,300, C2= +3,300.
a. Accept, since IRR exceeds opportunity cost.
b.Reject, since opportunity cost exceeds IRR.
c.Accept, since opportunity cost exceeds IRR.
d.Reject, since IRR exceeds opportunity cost.
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
