Evaluate the following project using an IRR criterion, based on an opportunity cost of 10 percent: CF0 = -6,000, CF1 = +3,300, CF2 = +3,300.
A) reject, since opportunity cost exceeds IRR.
B) accept, since opportunity cost exceeds IRR.
C) reject, since IRR exceeds opportunity cost.
D) accept, since IRR exceeds opportunity cost.
Answer: A) reject, since opportunity cost exceeds IRR.
Business
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