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1- Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm
1- Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?
2- Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?
Year Cash Flow 0 -$34,000 1 15,000 2 17,000 3 13,000
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