Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal

Question:

Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return rule to accept or reject projects.

a. What is the project?s IRR?

b. Should this project be accepted if the required return is 12%?

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...

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