Question 34

1. Compute the IRR for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10%.

   	Time:	0	1	2	3	4	5
   	Cash Flow:	-1300	400	400	400	400	400

   		16.32%; accept
   		16.32%; reject
   		13.44%; accept
   		13.26%; reject