You are analyzing a project and have gathered the following data: Based on the internal rate of return of _____ percent for this project,you should _____ the project.
A)14.67; accept
B)17.91; accept
C)14.67; reject
D)17.91; reject
E)18.46; reject

Question

You are analyzing a project and have gathered the following data:  Based on the internal rate of return of _____ percent for this project,you should _____ the project.
A)14.67; accept 
B)17.91; accept 
C)14.67; reject 
D)17.91; reject 
E)18.46; reject

Quizplus · Accepted Answer

Since the internal rate of return is 17.91%, which is higher than the cost of capital, the project should be accepted. Therefore, the best choice is B, "17.91; accept".

You Are Analyzing a Project and Have Gathered the Following