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October 25, 2014

Homework Help: accounting

Posted by Tammie on Tuesday, February 12, 2008 at 12:08am.

Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: CF0 = -6,000, CF1 = +3,300, CF2 = +3,300.
A) Accept, since IRR exceeds opportunity cost.
B) Reject, since opportunity cost exceeds IRR.
C) Accept, since opportunity cost exceeds IRR.
D) Reject, since IRR exceeds opportunity cost.

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