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You are considering an investment with the following cash flows. If the required rate of return for this investment is 7.0 percent, should you accept
You are considering an investment with the following cash flows. If the required rate of return for this investment is 7.0 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not? Year Cash Flow 0 -$100,000 1 $45,000 2 $75,000 3 -$5,000 WN Yes, because the IRR exceeds the required return of 7.0%. Yes, because the sum of the positive cash flows exceeds the sum of negative cash flows. O No, because the IRR is less than the required return of 7.0%. O You cannot apply the IRR rule in this case because there are multiple IRRs
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