$30$

Multiple Choice $1\mathrm{.}667$ points

You are considering an investment for which you require a rate of return of $8\mathrm{.}5$ percent. The investment costs $$53,500$ and will produce cash inflows of $$20,000$ for three years. Should you accept this project based on its internal rate of return? Why or why not?

Yes; because the IRR is $5\mathrm{.}96$ percent

No$\text{'}$ because the IRR is $5\mathrm{.}96$ percent

No; because the IRR is $9\mathrm{.}56$ percent

Yes; because the IRR is $8\mathrm{.}50$ percent

Yes; because the IRR is $9\mathrm{.}56$ percent

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