If a business project will cost $1 million as an initial investment and will generate cash...
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If a business project will cost $1 million as an initial investment and will generate cash inflows of $250 thousand each year for the next 5 years before it ends. The required rate of return is 8.00% and the internal rate of return (IRR) is 7.93%. Should the project be approved to move forward? DO Yes, because the required rate of return is less than the internal rate of return Yes, because the internal rate of return is less than the required rate of return No, because the required rate of return is less than the internal rate of return No, because the internal rate of return is less than the required rate of return If a business project will cost $1 million as an initial investment and will generate cash inflows of $250 thousand each year for the next 5 years before it ends. The required rate of return is 8.00% and the internal rate of return (IRR) is 7.93%. Should the project be approved to move forward? DO Yes, because the required rate of return is less than the internal rate of return Yes, because the internal rate of return is less than the required rate of return No, because the required rate of return is less than the internal rate of return No, because the internal rate of return is less than the required rate of return
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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