Technology Corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. The firm has a 6% cost of capital. What should the analysis indicate to the firm's managers?
A) IRR is 8%. Accept the project.
B) IRR is 3%. Reject the project.
C) IRR is 4%. Reject the project.
D) IRR is 6%. Accept the project.
Correct Answer:
Verified
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