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A Firm Is Evaluating a Proposal Which Has an Initial

Question 57

Multiple Choice

A firm is evaluating a proposal which has an initial investment of $50,000 and has cash flows of $15,000 per year for five years.If the firm's required return or cost of capital is 15%, should it accept the project using the IRR as a decision criteria?


A) yes
B) no
C) can't tell
D) none of the above

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