A firm evaluates all of its projects by applying the IRR rule.The required return for the following project is 21 percent.The IRR is _____ percent and the firm should ______ the project.

A)16.05 percent; reject
B)16.05 percent; accept
C)24.26 percent; reject
D)26.30 percent; accept
E)26.30 percent; reject

Question

A firm evaluates all of its projects by applying the IRR rule.The required return for the following project is 21 percent.The IRR is _____ percent and the firm should ______ the project.

A)16.05 percent; reject 
B)16.05 percent; accept 
C)24.26 percent; reject 
D)26.30 percent; accept 
E)26.30 percent; reject

Quizplus · Accepted Answer

The Answer of A firm evaluates all of its projects by applying the IRR rule.The required return for the following project is 21 percent.The IRR is _____ percent and the firm should ______ the project.

A)16.05 percent; reject 
B)16.05 percent; accept 
C)24.26 percent; reject 
D)26.30 percent; accept 
E)26.30 percent; reject

A Firm Evaluates All of Its Projects by Applying the IRR