An investment has an initial cost of 187 million and a life


An investment has an initial cost of $1.87 million and a life of 5 years. The annual cash flows from this equipment are estimated to be $548,200, $565,500, $516,900, $528,000 and $234,000. Should this project be accepted based on internal rate of return (IRR) if the required rate is 11 percent? Why or why not? a. yes; because the IRR is greater than 11%

b. yes; because the IRR is less than 11%

c. no; because the IRR is greater than 11%

d. no; because the IRR is equal to 11%

e. no; because the IRR is less than 11%

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Financial Management: An investment has an initial cost of 187 million and a life
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