Project X has the following cash flows: C₀ = +2,000, C₁ = -1,150, and C₂ = -1,150. If the IRR of the project is 9.85 percent and if the cost of capital is 12.00 percent, you would A)accept the project. B)reject the project.

Question

Quizplus · Accepted Answer

The IRR is greater than the cost of capital, so the project should be accepted.

Project X Has the Following Cash Flows: C0 = +2,000

Project X Has the Following Cash Flows: C₀ = +2,000