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 project should be accepted because the IRR of 9.89% exceeds the required return of 9.5%.

An Investment Has the Following Cash Flows