Question
The required return for an investment is 13 percent/year. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you
The required return for an investment is 13 percent/year. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return?
a) yes, because IRR is 13.13%
b) yes, because IRR is 13.65%
c) yes, because IRR is 13.75%
d) no, because IRR is 13.13%
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Managerial Accounting Information For Decisions
Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill
4th Edition
0324222432, 978-0324222432
