Leanard,Inc.is considering a very risky five-year project that has an initial outlay or cost of $70,000.The future cash inflows from its project for years 1,2,3,4,and 5 are all the same at $35,000.Leanard uses the internal rate of return method to evaluate projects.Will Leanard accept the project if its hurdle rate is 41.00%?
A)Leanard will probably reject this project because its IRR is about 39.74%,which is slightly below its hurdle rate.
B)Leanard will probably accept this project because its IRR is about 41.04%,which is slightly above its hurdle rate.
C)Leanard will accept this project because its IRR is about 41.50%.
D)Leanard will accept this project because its IRR is over 45.50%.

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The Answer of Leanard,Inc.is considering a very risky five-year project that has an initial outlay or cost of $70,000.The future cash inflows from its project for years 1,2,3,4,and 5 are all the same at $35,000.Leanard uses the internal rate of return method to evaluate projects.Will Leanard accept the project if its hurdle rate is 41.00%?
A)Leanard will probably reject this project because its IRR is about 39.74%,which is slightly below its hurdle rate.
B)Leanard will probably accept this project because its IRR is about 41.04%,which is slightly above its hurdle rate.
C)Leanard will accept this project because its IRR is about 41.50%.
D)Leanard will accept this project because its IRR is over 45.50%.