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question 7 The annual IRR is 6. (Round to two decimal places.) The IRR rule advises: (Select the best choice below.) A. With an IRR

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The annual IRR is 6. (Round to two decimal places.) The IRR rule advises: (Select the best choice below.) A. With an IRR of 15% and with Smith's cost of capital at 5.10%, according to the IRR rule, she should reject this opportunity. B. Since the IRR is less than the cost of capital, 15%, Smith should turn down this opportunity. C. Since the IRR is less than the cost of capital, 15\%, Smith should accept this opportunity. D. None of the above. (Round to the nearest dollar.) The NPV rule advises: (Select the best choice below.) A. Even though the NPV is negative, the IRR is below the cost of capital, so the correct decision is to reject the upfront payment. B. Since the NPV is negative, the correct decision is to accept the upfront retainer. C. Even though the NPV is positive, the IRR is high enough to accept the upfront retainer. D. None of the above

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