An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why or why not?

A)No; The IRR exceeds the required return by about 0.06 percent.
B)No; The IRR is less than the required return by about 0.94 percent.
C)Yes; The IRR exceeds the required return by about 0.06 percent.
D)Yes; The IRR exceeds the required return by about 0.94 percent.
E)Yes; The IRR is less than the required return by about 0.06 percent.

Question

An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why or why not?

A)No; The IRR exceeds the required return by about 0.06 percent. 
B)No; The IRR is less than the required return by about 0.94 percent. 
C)Yes; The IRR exceeds the required return by about 0.06 percent. 
D)Yes; The IRR exceeds the required return by about 0.94 percent. 
E)Yes; The IRR is less than the required return by about 0.06 percent.

Quizplus · Accepted Answer

The Answer of An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? Why or why not?

A)No; The IRR exceeds the required return by about 0.06 percent. 
B)No; The IRR is less than the required return by about 0.94 percent. 
C)Yes; The IRR exceeds the required return by about 0.06 percent. 
D)Yes; The IRR exceeds the required return by about 0.94 percent. 
E)Yes; The IRR is less than the required return by about 0.06 percent.

An Investment Has the Following Cash Flows and a Required