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Northwest Industries is considering a project with the following cash flows: Northwest's required rate of return is 12%. Would Northwest take this project if it
Northwest Industries is considering a project with the following cash flows: Northwest's required rate of return is 12%. Would Northwest take this project if it uses IRR as a decision criteria? Assume the project is independent.
Initial Outlay = $126,000
Cash Flows
Year 1 = $44,000
Year 2 = $59,000
Year 3 = $64,000
A)Yes
B)No
C)Northwest would be indifferent between accepting and rejecting the project.
D)Cannot be determined.
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