You are considering an investment for which you require a 14 percent rate of return. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not?
A) Yes; because the IRR is 13.13 percent
B) Yes; because the IRR is 13.65 percent
C) Yes; because the IRR is 13.67 percent
D) No; because the IRR is 13.13 percent
E) No; because the IRR is 13.65 percent

Question

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The Answer of You are considering an investment for which you require a 14 percent rate of return. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not?
A) Yes; because the IRR is 13.13 percent
B) Yes; because the IRR is 13.65 percent
C) Yes; because the IRR is 13.67 percent
D) No; because the IRR is 13.13 percent
E) No; because the IRR is 13.65 percent

You Are Considering an Investment for Which You Require a 14