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URGENT A firm with a cost of capital of 15 percent is evaluating three capital projects. The internal rates of return are as follows: IRR(1)=12%,
URGENT
A firm with a cost of capital of 15 percent is evaluating three capital projects. The internal rates of return are as follows: IRR(1)=12%, IRR(2)=15%, IRR(3)=18%. The firm should accept the following project(s): A. Reject project 3 because IRR> Cost of capital. B. Accept all projects because IRR>10%. C. Accept projects 2 and 3 because IRR>= Cost of capital. D. It depends of the cash flows of the projects. E. Accept project 3 because IRR> Cost of capital.
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