Question: You are considering a project A which has cash flows given below: Year o Year 1 Year 2 Project A ($8,000) $50,000 ($50,000) Project A's

You are considering a project A which has cash flows given below: Year o Year 1 Year 2 Project A ($8,000) $50,000 ($50,000) Project A's cost of capital is 15%. Which of the following statements best describes Project A? (Hint: draw NPV profile) The project's NPV profile starts with a negative NPV at the cost of capital of 0%. Two of the statements are consistent with Project A. The project has multiple IRRs. If the cost of capital would be between the two IRRs, it could be accepted. irtant with proiect

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