Use the following information to solve #29, #30, & #31:

Period 1’s Project CF: 1250

Period 2’s Project CF: 1300

Period 3’s Project CF: 950

Period 4’s Project CF: 700

The initial cost the project is $ 2400. Given that the risk free rate is 9%, the risk premium is 4% & the beta coefficient is 0.5.

(#29): Calculate the projects IRR.

A- IRR = 30.56%

B- IRR = 11.4%

C- IRR = 5.64%

D- IRR = 3.56%

(#30): What is the required Rate of Return:

A- 14.11%

B- 11.4%

C- 12.3%

D- 30.56%

(#31): Should the project be accepted?

A- Yes

B- No