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Financial Forensics · Quiz 2 · 6 Aug 2023 · May 2023 term

Question 7: Your company has a project available with the following c…

Question 7

+1 markOne correct option

Your company has a project available with the following cash flows:

YearCash Flow
0−₹81,600
121,250
224,500
330,300
425,750
519,300

If the required return is 13 percent, should the project be accepted based on the IRR?

  1. A

    Yes, because the IRR is 15.43 percent.

  2. B

    Yes, because the IRR is 14.82 percent.

  3. C

    No, because the IRR is 16.05 percent.

  4. D

    No, because the IRR is 14.82 percent.

Show answer

Correct answer

  • B

    Yes, because the IRR is 14.82 percent.

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Question 7 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 2 paper sat on 6 Aug 2023, in the May 2023 term (IIT M DEGREE AN3 EXAM QPE3 06 Aug 2023). It carries 1 mark.

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