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You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $67,400 and will produce cash inflows
You are considering an investment for which you require a rate of return of 8.5 percent. The investment costs $67,400 and will produce cash inflows of $25,720 for three years. Should you accept this project based on its internal rate of return? Why or why not?
No; because the IRR is 9.51 percent
Yes; because the IRR is 6.67 percent
Yes; because the IRR is 7.08 percent
Yes; because the IRR is 9.51 percent
No; because the IRR is 7.08 percent
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