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5. Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, should the firm

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5. Calculating IRR. A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, should the firm accept the following project? www.m Year 0 1 2 3 Cash Flow --$130,000 68,000 71,000 54,000 4 6. Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required retum of 11 percent, should the firm accept this project? What if the required return was 27 percent

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