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The IRR of the project is _____ Answer options : (12% -14%) , (14%), (14% - 15%), (16%-18%), (18%), (18%-20%)




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Answer options blank 1: (is/ is not)

answer option blank 2: (greater / less)

answer option blank 3: (less/ greater)

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Crab Company is considering a project with an initial investment of $601,000 that
is expected to produce cash inflows of $129,000 for eleven years. Crab's required
rate of return is 14%.
E
(Click on the icon to view Present Value of $1 table.)
E
(Click on the icon to view Present Value of Ordinary Annuity of $1 table.)

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14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.)
Net Cash
Annuity PV Factor
Present
Years
Inflow
(i=14%, n=11)
Value
1 - 11
Present value of annuity
0
Investment
Net present value

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15. What is the IRR of the project?
Start by calculating the Annuity PV factor. (Enter the factor amount to three decimal places, XXXX.)
Annuity PV factor
The IRR of the project is

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16. Is this an acceptable project for Crab?
This
an acceptable project for Crab, because the NPV is
than zero and the IRR is
than Crab's required rate of return.

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