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Suppose a Particular Investment Project Will Generate an Immediate Cash

Question 1

Multiple Choice

Suppose a particular investment project will generate an immediate cash inflow of $1,000,000 followed by cash outflows of $500,000 in each of the next three years.What is the project's IRR? Suppose a company's hurdle rate is 15%,should it accept the project?


A) 23%; reject the project
B) 23%; accept the project
C) 15%; reject the project
D) 15%; accept the project

Correct Answer:

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