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You are considering an investment with the following cash flows: Year 0 1 2 Cash Flow -12,000 5,500 -1,500 8,000 7,000 3 4 If the

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You are considering an investment with the following cash flows: Year 0 1 2 Cash Flow -12,000 5,500 -1,500 8,000 7,000 3 4 If the required rate of return for this investment is 15.5%, should you accept it based solely on the internal rate of return rule? Why or why not? No; because the IRR is a negative rate of return. Yes; because the IRR exceeds the required return. Yes; because the IRR is a positive rate of return You cannot apply the IRR rule in this case because there are multiple IRRS. No; because the IRR is less than the required return

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