A firm considers a project with the following cash flows: time-zero = +20,000, years 1-5 = -4,500. Should the project be accepted if the cost of capital is 10 percent?

Question

Answer

No, the IRR of the project is 12.5 percent.

Answer

No, the IRR of the project is 4.06 percent.

Answer

Yes, the IRR of the project is 12.5 percent.

Answer

Yes, the IRR of the project is 4.06 percent.

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A firm considers a project with the following cash flows: time-zero = +20,000, y...

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