Question: Multiple Corp, is evaluating a project with the following cash flows: Year . Cash Flow 0 ($775,000) 1 $175,000 2 $150,000 3 $300,000 4 $175,000

Multiple Corp, is evaluating a project with the following cash flows:

Year . Cash Flow

0 ($775,000)

1 $175,000

2 $150,000

3 $300,000

4 $175,000

5 $150,000

The company uses a weighted average cost of capital of 7.65%

Calculate the IRR for the project and Would you accept or reject the Project?

a.

7.65% and Reject the Project.
b.

7.24% and Accept the Project.
c.

7.24% and Reject the Project.
d.

7.65% and Accept the Project.

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