A project has an initial cash outflow of $42,000 at t=0 and perpetual (i.e., infinitely many) cash inflows of $15,000 a year, starting from t=1. Suppose the required return is 13% per annum. What is the internal rate of return (IRR) of the project? Should the project be accepted? 

Options: A. 35.71%; accept. B. 35.71% reject. C. 28.00%; accept. D. 28.00%; reject. E. 13.00%; accept.

Answer rating: 100% (QA)

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