An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5 %? Why or why not?
A) Yes; because the IRR exceeds the required return by about 0.39 %.
B) Yes; because the IRR is less than the required return by about 3.9 %.
C) Yes; because the IRR is positive.
D) No; because the IRR exceeds the required return by about 3.9 %.
E) No; because the IRR is 9.89 %.

Question

An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5 %? Why or why not? 
A) Yes; because the IRR exceeds the required return by about 0.39 %. 
B) Yes; because the IRR is less than the required return by about 3.9 %. 
C) Yes; because the IRR is positive. 
D) No; because the IRR exceeds the required return by about 3.9 %. 
E) No; because the IRR is 9.89 %.

Quizplus · Accepted Answer

The Answer of An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5 %? Why or why not? 
A) Yes; because the IRR exceeds the required return by about 0.39 %. 
B) Yes; because the IRR is less than the required return by about 3.9 %. 
C) Yes; because the IRR is positive. 
D) No; because the IRR exceeds the required return by about 3.9 %. 
E) No; because the IRR is 9.89 %.

An Investment Has the Following Cash Flows