Financial Management: Technology Corp. is considering a $200,000 investment in a

Question

Financial Management:

Technology Corp. is considering a $200,000 investment in a new marketing campaign that they anticipate will provide annual cash flows of $52,000 for the next five years. The firm has a 10% cost of capital. What should the analysis indicate to the firm's managers?

Select one:

a. IRR us between 11% and 12%. Accept the project.

b. IRR us between 10% and 11%. Accept the project.

c. IRR is between 9% and 10%.  Reject the project.

d. IRR is between 9% and 10%. Accept the project.

Explanation / Answer

c. IRR is between 9% and 10%. Reject the project

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