Question: Geronimo, Inc. is considering a project that has an initial outlay or cost of Ghc220,000. The respective future cash inflows from its four-year project for

Geronimo, Inc. is considering a project that has an initial outlay or cost of Ghc220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: Ghc50,000, Ghc60,000, Ghc70,000, and Ghc80,000, respectively. Geronimo uses the internal rate of return method to evaluate projects. Will Geronimo accept the project if its hurdle rate is 10%? A. Geronimo will not accept this project because its IRR is about 9.70%. B. Geronimo will not accept this project because its IRR is about 8.70%. C. Geronimo will not accept this project because its IRR is about 6.50%. D. Geronimo will not accept this project because its IRR is about 4.60%

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