Cash flows and required return

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An investment has the following cash flows and a required return of 14 percent. Based on IRR, should this project be accepted? Why or why not? Year 0: -$42,000 Year 1: $15,300 Year 2: $28,400 Year 3: $7,500 Select one: a. No; The IRR exceeds the required return by about 0.06 percent. b. No; the IRR exceeds the required return by about 1.53 percent. c. No; The IRR is less than the required return by about 2.53 percent d. Yes; The IRR exceeds the required return by about 2.53 percent e. Yes; The IRR is less than the required return by about 0.06 percent

Reference no: EM131079280

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