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You are considering an investment for which you require a14 percent rate of return. The investment will cost $85,000 andproduce cash inflows of $20,000 a
You are considering an investment for which you require a14 percent rate of return. The investment will cost $85,000 andproduce cash inflows of $20,000 a year for 5 years. Should youaccept this project based on its internal rate of return? Why orwhy not?
a. no -- because the IRR is 14.12%
b. yes -- because the IRR is equal to 14%
c. yes -- because the IRR is 14.12%
d. no -- because the IRR is 5.67%
e. yes -- because the IRR is 14.67%
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