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

Question

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

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 percent? Why or why not? 
A) No; The IRR exceeds the required return by about 1.08 percent. 
B) No; The IRR is less than the required return by about 0.97 percent. 
C) Yes; The IRR exceeds the required return by about 1.08 percent. 
D) Yes; The IRR is less than the required return by about 0.97 percent 
E) Yes; The IRR is less than the required return by about 1.08 percent.

An Investment Has the Following Cash ﬂOws