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The following is commonly used to determine whether a project is good or bad: A) the IRR of the project: B) the NPV of the

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The following is commonly used to determine whether a project is good or bad: A) the IRR of the project: B) the NPV of the project: Cl the profitability index of the project D) all of the above. What is the approximate IRR for a project that costs exist100,000 and provides annual cash inflows of exist30,000 for 8 years? A) 24.95% B) 19.90% C) 32.3% D) 80.0% An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5 percent? Why or why not? a. yes: because the IRR is less than the required return by about 3.9 percent b. yes: because the IRR exceeds the required return by about 0.39 percent c. yes: because the IRR is positive d. no: because the IRR exceeds the required return by about 3.9 percent e. no: because the IRR is 9.89 percent

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