Question: You are analyzing a proposed project and have compiled the following information: WACC (Required Return): 15.00% Year 0 1 2 3 Cash flows -$1,500 $700

  1. You are analyzing a proposed project and have compiled the following information:

    WACC (Required Return): 15.00%

    Year

    0

    1

    2

    3

    Cash flows

    -$1,500

    $700

    $700

    $700

    Required payback period: 3 years

    What is the project's IRR? Would the company accept or reject the project based on the IRR criterion?

    15.00%; reject

    15.00%; accept

    18.91%; reject

    18.91%; accept

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