The ABC Company has determined that its cost of money is 0.12. However, because of a...
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The ABC Company has determined that its cost of money is 0.12. However, because of a series of necessary nonproductive (not generating cash flows) investments, it has found that on average a discretionary investment must earn 0.15 in order for the firm to break even. Should an investment with an IRR of 0.14 be accepted? The ABC Company has determined that its cost of money is 0.12. However, because of a series of necessary nonproductive (not generating cash flows) investments, it has found that on average a discretionary investment must earn 0.15 in order for the firm to break even. Should an investment with an IRR of 0.14 be accepted?
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ANS WER No because the investment would not generate enough cash flow to cover ... View the full answer
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