Question: Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment

Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment of $1.000. It will provide the cash inflows of $500 in year 1,$300 in year 2 , and $100 each year hereafter (starting in year 3 ). The required rate of return is 10% for this project. Based on the NPV rule, the payback period rule, and the IRR rule in the previous questions, should we accept this project? A) Yes B) No Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment of $1,000. It will provide the cash inflows of $500 in year 1,$300 in year 2 , and $100 each year hereafter (starting in year 3 ). The required rate of return is 10% for this project. Suppose that the internal rate of return (IRR) for this project is 41.73%. Based on the IRR rule, should we accept this project? A) No B) Yes
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