Question: Question 2 (based on Chapter 5) Use the EXTERNAL RATE OF RETURN method to answer this question. Assume 15% cost of capital. Consider a project

Question 2 (based on Chapter 5) Use the EXTERNAL RATE OF

Question 2 (based on Chapter 5) Use the EXTERNAL RATE OF RETURN method to answer this question. Assume 15% cost of capital. Consider a project with the cash flows described below, and assume the REINVESTMENT rate is equal to 10% (project's cash flows can be re- invested at 10%). Should the project be accepted? Why? Cash Flow -300,000 140,000 100,000 70,000 50,000 40,000 40,000 Page 1

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