Considering investing in a project with the cash flows

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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback statistic for the project are 3.5 and 4.5 years, respectively. Use the IRR decision to evaluate this project; should it be accepted or rejected? A. IRR = 16.92 percent; accept the project B. IRR = 7.123 percent; reject the project C. IRR = 18.32 percent; accept the project D. IRR = 7.59 percent; reject the project

Cash Flows:

0: -5,000

1: 1,200

2: 1,400

3: 1,600

4: 1,600

5: 1,100

6: 2,000

Reference no: EM131082871

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