Consider a project with the following cash flows and a company that has a cost of Capital of 15%.
Year Monetary flows
0 - 20,000
1 - 50 000
2 -10,000
A) What are the two IRRs associated with these cash flows?
B) If the cost of capital of the enterprise is between the two IRR values ??calculated in the (A), should it accept or reject the project?