Question: You are considering a project A which has cash flows given below: Year 0 ($8,000) Year 1 $50,000 Year 2 ($50,000) Project A Project A's

 You are considering a project A which has cash flows given

You are considering a project A which has cash flows given below: Year 0 ($8,000) Year 1 $50,000 Year 2 ($50,000) Project A Project A's cost of capital is 15%. Which of the following statements best describes Project A? (Hint: draw NPV profile) Two of the statements are consistent with Project A. O Project A has multiple IRRs. If both IRRs were greater than its cost of capital, it should be accepted. The project's NPV profile intersects twice with its X axis. No matter what its cost of capital is, it should be rejected

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