You are considering an investment for which you require a 14 percent rate of return. the investment costs $61,900 and will produce cash inflows of $26,000 for three years. should you accept this project based on its internal rate of return? why or why not?

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Clare Bender

Business

17 February, 07:31

You are considering an investment for which you require a 14 percent rate of return. the investment costs $61,900 and will produce cash inflows of $26,000 for three years. should you accept this project based on its internal rate of return? why or why not?

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Preston Pitts · Answer 1

You are considering an investment for which you require a 14 percent rate of return. the investment costs $61,900 and will produce cash inflows of $26,000for three years. You should not accept this project based on its internal rate of return, because the IRR is 12.51 percent