You are considering an investment with the following cash flows.If the required rate of return for this investment is 13.5%,should you accept it based solely on the internal rate of return rule? Why or why not?
A) yes; because the IRR exceeds the required return.
B) yes; because the IRR is a positive rate of return.
C) no; because the IRR is less than the required return.
D) no; because the IRR is a negative rate of return.
E) You can not apply the IRR rule in this case because there are multiple IRRs.
Correct Answer:
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