A company considered an investment opportunity that takes an initial investment of $75,000 and yields after-tax cash flow of $32,000 for the first three years and $12,000 for the following two years.
Which two statements could be said of this project if the company decides to invest in the opportunity?
a. IRR is higher than 13%
b. hurdle rate can be 24%
c. IRR is less than 12%
d. Hurdle rate can be 20%