Question: Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows

Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.

Time: 0 1 2 3 4 5

Cash flow: 75 75 0 100 75 50

Multiple Choice

13.26 percent, reject

10 percent, accept

10 percent, reject

13.26 percent, accept

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