Alcan,Inc.is considering a project that has an initial outlay or cost of $220,000.The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000,$60,000,$70,000,and $80,000,respectively.Alcan uses the internal rate of return method to evaluate projects.Will Alcan accept the project if its hurdle rate is 12%?
A)Alcan will not accept this project because its IRR is about 9.74%.
B)Alcan will not accept this project because its IRR is about 7.63%.
C)Alcan will not accept this project because its IRR is about 6.50%.
D)Alcan will not accept this project because its IRR is about 4.66%.

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The Answer of Alcan,Inc.is considering a project that has an initial outlay or cost of $220,000.The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000,$60,000,$70,000,and $80,000,respectively.Alcan uses the internal rate of return method to evaluate projects.Will Alcan accept the project if its hurdle rate is 12%?
A)Alcan will not accept this project because its IRR is about 9.74%.
B)Alcan will not accept this project because its IRR is about 7.63%.
C)Alcan will not accept this project because its IRR is about 6.50%.
D)Alcan will not accept this project because its IRR is about 4.66%.

Alcan,Incis Considering a Project That Has an Initial Outlay or Cost