Use the table for the question(s)below. Consider the following two projects with cash flows in $: -Which of the following statements is correct? A)You should accept project A since its IRR 15%. B)You should reject project B since its NPV 0. C)You should accept project A since its NPV

Question

Use the table for the question(s)below. Consider the following two projects with cash flows in $: -Which of the following statements is correct? A)You should accept project A since its IRR > 15%. B)You should reject project B since its NPV > 0. C)You should accept project A since its NPV < 0. D)You should accept project B since its IRR < 15%.

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is a metric used to evaluate the profitability of a project. If the IRR of a project is greater than the required rate of return (in this case, 15%), it indicates that the project is expected to generate returns above the threshold, making it a desirable investment.

Use the Table for the Question(s)below