An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 %? Why or why not?
A) No; The IRR exceeds the required return by about 1.08 %.
B) No; The IRR is less than the required return by about 0.97 %.
C) Yes; The IRR exceeds the required return by about 1.08 %.
D) Yes; The IRR is less than the required return by about 0.97 %
E) Yes; The IRR is less than the required return by about 1.08 %.

Question

An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 %? Why or why not? 
A) No; The IRR exceeds the required return by about 1.08 %. 
B) No; The IRR is less than the required return by about 0.97 %. 
C) Yes; The IRR exceeds the required return by about 1.08 %. 
D) Yes; The IRR is less than the required return by about 0.97 % 
E) Yes; The IRR is less than the required return by about 1.08 %.

Quizplus · Accepted Answer

The Answer of An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 14 %? Why or why not? 
A) No; The IRR exceeds the required return by about 1.08 %. 
B) No; The IRR is less than the required return by about 0.97 %. 
C) Yes; The IRR exceeds the required return by about 1.08 %. 
D) Yes; The IRR is less than the required return by about 0.97 % 
E) Yes; The IRR is less than the required return by about 1.08 %.

An Investment Has the Following Cash Flows