Should the following project be accepted if the cost of capital is 12%? Initial Investment is $50,000

A) Yes, because the internal rate of return is 10.5% which is less than 12%.
B) Yes, because the internal rate of return is 35% which is more than 12%.
C) No, because the internal rate of return is 8.7% which is less than 12%.
D) Yes, because the internal rate of return is 48% which is more than 12%.

Question

Should the following project be accepted if the cost of capital is 12%? Initial Investment is $50,000

A) Yes, because the internal rate of return is 10.5% which is less than 12%. 
B) Yes, because the internal rate of return is 35% which is more than 12%. 
C) No, because the internal rate of return is 8.7% which is less than 12%. 
D) Yes, because the internal rate of return is 48% which is more than 12%.

Quizplus · Accepted Answer

The Answer of Should the following project be accepted if the cost of capital is 12%? Initial Investment is $50,000

A) Yes, because the internal rate of return is 10.5% which is less than 12%. 
B) Yes, because the internal rate of return is 35% which is more than 12%. 
C) No, because the internal rate of return is 8.7% which is less than 12%. 
D) Yes, because the internal rate of return is 48% which is more than 12%.

Should the Following Project Be Accepted If the Cost of Capital