Use The Following Information To Solve 29 30 31 Period 1 S Project Cf 1250 Perio
Use the following information to solve #29, #30, & #31:
Period 1’s Project CF: 1250
Period 2’s Project CF: 1300
Period 3’s Project CF: 950
Period 4’s Project CF: 700
The initial cost the project is $ 2400. Given that the risk free rate is 9%, the risk premium is 4% & the beta coefficient is 0.5.
(#29): Calculate the projects IRR.
A- IRR = 30.56%
B- IRR = 11.4%
C- IRR = 5.64%
D- IRR = 3.56%
(#30): What is the required Rate of Return:
A- 14.11%
B- 11.4%
C- 12.3%
D- 30.56%
(#31): Should the project be accepted?
A- Yes
B- No
