Should the following project be accepted if the cost of capital is 12%? Initial Investment is $50,000.
?
A) Yes, because the internal rate of return is 10.5%, which is less than 12%.
B) Yes, because the internal rate of return is 35%, which is more than 12%.
C) No, because the internal rate of return is 8.7%, which is less than 12%.
D) Yes, because the internal rate of return is 48%, which is more than 12%.
Correct Answer:
Verified
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