Question
Suppose Joe's Inc. is considering a project with the following cash flows shown and the required return on projects of this risk is 8%. Time
Suppose Joe's Inc. is considering a project with the following cash flows shown and the required return on projects of this risk is 8%.
| Time | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | 100,000 | 30,000 | 45,000 | 55,000 | 30,000 | 10,000 |
Use the IRR decision rule to evaluate this project; should it be accepted or rejected?
| 4.95%, reject | ||
| 23.18% reject | ||
| 23.18%, accept | ||
| 4.95%, accept |
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
