Post a New Question

accounting

posted by .

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.

  • accounting -

    rsef

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics- opportunity cost

    how does opportunity cost vary? why does opportunity cost vary?
  2. finance

    Thompson stores is considering a project that has the following cash flow data. What is the project's IRR. Note that a project's projected IRR can be less than the WACC and even negative, in which case it wll be rejected. Year 0 ($1,000), …
  3. Business finance

    Question No 1: If two projects are _______________, the fact that they have unequal lives will not affect the analysis. a)Mutually exclusive b)Dependent c)Independent d)Correlated Question No 2: Mr. A, as a financial consultant, has …
  4. Accounting please help in homework

    Question No: 1 Mr. A, as a financial consultant, has prepared a feasibility report of a project for XYZ Company that the company is planning to undertake. He has suggested that the project is feasible. The consultancy fee paid to Mr. …
  5. Finance

    Thompson Stores is considering a project that has the following cash flow data. What is the project's IRR?
  6. finance

    Given: WACC= 12%, NPV=+1,491.39, IRR=14.87378%, your all-equity firm has 5,000 common shares outstanding, and the cash flows are: CF0= -18,000, CF1= 3,000 CF2= 3,000, CF3=7,000, CF4?
  7. Finance

    Capital Budgeting Problems I. Indigo Industrial, Inc. is trying to determine which, if any, of five different projects it should undertake. Indigo Industrial has a 8.25% required rate of return on projects that it undertakes. The projected …
  8. Math

    Indigo Industrial, Inc. is trying to determine which, if any, of five different projects it should undertake. Indigo Industrial has a 8.25% required rate of return on projects that it undertakes. The projected cash flows for each of …
  9. Corporate Finance

    I have answered all of the following except for the payback period, I do not understand how to do it. Can you please explain how to do the payback period?
  10. Finance

    Mooncorp Insurance has quoted you an annual premium to insure your car of $3100. You are offered a 15% discount if you pay the lump sum immediately. They also offer an alternative payment method. You can pay the account in full by …

More Similar Questions

Post a New Question