subject
Business, 07.04.2020 03:12 hma9153

You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5%, should you accept it based solely on the internal rate of return rule? Why or why not?
Year Cash Flow
0 -$12,000
1 $5,500
2 $8,000
3 -$1,500
a. yes; because the IRR exceeds the required return
b. yes; because the IRR is a positive rate of return
c. no; because the IRR is less than the required return
d. no; because the IRR is a negative rate of return
e. You can not apply the IRR rule in this case because there are multiple IRRs

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 18:00
Arapid increase in the population of a city or town is most likely to lead to which of the following? a. higher-paying jobs. b. low housing prices. c. a seller's market. d. a drop in population density. 2b2t
Answers: 1
question
Business, 22.06.2019 04:00
Match the type of agreements to their descriptions. will trust living will prenuptial agreement
Answers: 2
question
Business, 22.06.2019 04:30
4. the condition requires that only one of the selected criteria be true for a record to be displayed.
Answers: 1
question
Business, 22.06.2019 23:10
Which investment has the liquidity and can be converted into cash easily?
Answers: 2
You know the right answer?
You are considering an investment with the following cash flows. If the required rate of return for...
Questions
question
Mathematics, 26.02.2021 03:20
question
History, 26.02.2021 03:20
question
English, 26.02.2021 03:20
question
Mathematics, 26.02.2021 03:20