8. (1pt) A firm evaluates all of its projects by applying the IRR rule. If the required return is

15%, should the firm accept the following project?

Year

Cash Flow

0

-$150,000

1

$70,000

2

$60,000

3

$50,000

9. (2pts) What is the NPV for the following set of cash flows if the relevant discount rate is

14%? What is the profitability index? Should the firm accept the project?

Year

Cash Flow

0

-$31,000

1

$16,000

2

$16,000

3

$10,000