Question: Question 7 (2 points) Kingston Utility is evaluating one potential project. The initial investment of the project is $620. This project will generate a cash

Question 7 (2 points) Kingston Utility is evaluating one potential project.

Question 7 (2 points) Kingston Utility is evaluating one potential project. The initial investment of the project is $620. This project will generate a cash flow of $380 each year from year 1 to year 4. By the end year 5, the company need to spend $940 to restore the project's impact on environment. Which of the following statements is correct? Hint: In case like this, we might have multiple IRRs. In excel, you can change the 'guess' parameter in IRR function to have different IRR output. For example, you can start with 10%, 20%, 30% until 50% to see whether there are multiple IRRs. if the company's weighted average cost of capital is less than 8.85%, then the company should accept the project. None of the choices is correct. if the company's weighted average cost of capital is between 8.85% and 13.11%, then the company should accept the project. if the company's weighted average cost of capital is greater than 13.11%, then the company should accept the project

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