Palmer Soaps is considering a project to expand their line of hand soaps for mechanics...
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Palmer Soaps is considering a project to expand their line of hand soaps for mechanics and hard laborers. The project has an initial investment of $187,000. Annual cash flows are expected to be $52,000 for five years. Based on the internal rate of return (IRR) of the project, should the company accept the project if their required rate of return is 11%?
A : Yes, because the IRR is greater than 11%.
B : No, because the IRR is greater than 11%.
C : No, because the IRR is less than 11%.
D : Yes, because the IRR is less than 11%.
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