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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of

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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Time 0 1 2 3 Cash Flow -100 30 45 55 Use the IRR decision rule to evaluate this project; should it be accepted or rejected? O -23.18 percent, reject O 4.95 percent, accept 23.18 percent, accept 0 -4.95 percent, reject Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Time 0 1 2 3 Cash Flow -100 30 45 55 Use the IRR decision rule to evaluate this project; should it be accepted or rejected? O -23.18 percent, reject O 4.95 percent, accept 23.18 percent, accept 0 -4.95 percent, reject

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