INTERNAL RATE OF RETURN Suppose that a project required an initial cash investment of $24,000 and was expected to generate inflows of $10,000,

$10,000, and $10,000 for the next three years. Further, assume that our company’s required rate of return for new projects is 12%. Is this project worth funding? Would it be a good investment if the company’s required rate of return were 15%? Use the following figures to determine the answers to these questions:

Cash investment = $24,000 Year 1 inflow = $10,000

• Year 2 inflow = $10,000

• Year 3 inflow = $10,000

• Required rate of return = 12%