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Question
Project Black Swan requires an initial investment of $115,000. It has positive cash flows of $140,000 for each of the next two years. Because of major demolition and environmental clean-up costs, cash flow for the third and final year of the project is $(170,000). If the company 's required rate of return is 12%, the project should be:A) rejected because the IRR is less than 12%.
B) accepted because the NPV is positive at 16%.
C) the project is unacceptable at any discount rate.
D) rejected because there may be more than one IRR.
Answer
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Related questions
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