Question: You are analyzing a proposed project and have compiled the following information: WACC (Required Return): 8.00% Year 0 1 2 3 Cash flows -$200,000 $70,000

You are analyzing a proposed project and have compiled the following information: WACC (Required Return): 8.00% Year 0 1 2 3 Cash flows -$200,000 $70,000 $80,000 $90,000 Required payback period: 2 years Required discounted payback period: 2.5 years What is the project's IRR? Would the company accept or reject the project based on the IRR criterion? 8.00%; reject 8.00%; accept 9.28%; reject 9.28%; accept

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