You have the chance to participate in a project that produces the following cash flows:
|
Cash Flows ($) |
||
|
C0 |
C1 |
C2 |
|
+ 5,000 |
+ 4,000 |
-11,000 |
The internal rate of return is 13 percent. If the opportunity cost of capital is 10 percent, would you accept the offer?
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