You have an investment opportunity that you've calculated will provide an IRR of 6.7% and an...

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You have an investment opportunity that you've calculated will provide an IRR of 6.7% and an NPV of -$5,440. You want to achieve an annual return of 8%. Should you make the investment and why? Yes because a 6.7% return is good given the risk involved. Yes because the IRR is positive. No because the IRR is less than your desired rate of return. No because the NPV means it will only cost you $5,440 and yet you'll achieve a high rate of return. You have an investment opportunity that you've calculated will provide an IRR of 6.7% and an NPV of -$5,440. You want to achieve an annual return of 8%. Should you make the investment and why? Yes because a 6.7% return is good given the risk involved. Yes because the IRR is positive. No because the IRR is less than your desired rate of return. No because the NPV means it will only cost you $5,440 and yet you'll achieve a high rate of return.

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The detailed answer for the above question is provided below Given Information IRR 67 Net present va... View the full answer