Questions 19-20

QUESTION 19 Your required return is 15%. Should you accept a project with the following cash flows? Year 0:-$85 Year 1: $40 Year 2: $40 Year 3: $35 A. Yes, because the IRR is 13.9%. B. Yes, because the IRR is 14.7%. C. No, because the IRR is 16.2%. D. Yes, because the IRR is 17.2%. E. No, because the IRR is 19.2%. QUESTION 20 What is the payback period of a $21,000 investment with the following cash flows? Year 1: $3,000 Year 2: $4,000 Year 3: $5,000 Year 4: $6,000 Year 5: $7,000 A. 3.47 years OB. 2.69 years C. 4.43 years D.4.72 years E. 3.34 years