What should the analysis indicate to the firm managers

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Technology Corp. is considering a $125,000 investment in a new marketing campaign which they anticipate will provide annual cash flows of $51,500 for the next 3 years. The firm has a 12% cost of capital. What should the analysis indicate to the firm's managers.

a) IRR between 11% and 12% - accept the project
b) IRR between 11% and 12% - reject the project
c) IRR between 12% and 13% - accept the project
d) Not enough information

 

Reference no: EM13285327

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