Version A 23. Project X has the following cash flows: Year Cash flow $4000 -2,400 -2,400 If the required return is 15%, you would: A. Accept the project, since required return exceeds IRR. B. Reject the project, since required return exceeds IRR. C. Accept the project, since IRR exceeds required return D. Reject the project, since IRR exceeds required return. E. Be unable to decide based on the IRR ruld. 24. Which of the following investment rules can be used with capital rationing? A. NPV B. Payback C. IRR D. Profitability index E. All of the above 25. You are considering a project with the following information: Initial investment 50,000 Present value of future benefits NPV $70,000 $20,000 Will you accept the projeet based on the profitability index? Why or why not? A. Yes, because the profitability index is 0.40 B. No, because the profitability index is 0.40 C. Yes, because the profitability index is 1.4 D. No, because the profitability index is 1.4 E. No, because the profitability index is 0.60