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use the following information for project Kohram: Year Est Cash Flow (in $thousands) 0 -$500 1 -$25 2 $135 3 $450 4 $630 5 $250

use the following information for project Kohram:

Year

Est Cash Flow (in $thousands)

0

-$500

1

-$25

2

$135

3

$450

4

$630

5

$250

Required rate of return = 22%

$940 is Project Kohrmans net present value (in $thousands) and the internal rate of return is 22.0%

1.Based on net present value only should you accept or reject project Kohrman

A) Except

B)Rejects

C)Not enough information to answer

2. based solely on internal rate of return should you accept or reject project and why?

A) Accept because IRR is positive

B) Accept because IRR > 22% C) Reject because IRR is negative

D) Reject because IRR > 22%

E)Accept because IRR = 22%

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