Question: Your required return is 15%. Should you accept a project with the following cash flows? Year: 0 1 2 3 Cash Flows: $-85 $40 $40
Your required return is 15%. Should you accept a project with the following cash flows?
Year: 0 1 2 3
Cash Flows: $-85 $40 $40 $35
a. No, because the IRR is 13.92%.
b. No, because the IRR is 14.73%.
c. Yes, because the IRR is 16.21%.
d. Yes, because the IRR is 17.19%.
e. Yes, because the IRR is 19.48%.
Please Show your work.
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