A firm evaluates all of its projects by applying the IRR rule Year Cash Flow 0 $ 155,000 1 61,000 2 78,000 3 62,000 Requirement 1 What is the project's IRR Requirement 2 If the required return is 13 percent, should the firm accept the project

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A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 155,000 1 61,000 2 78,000 3 62,000 Requirement

A firm evaluates all of its projects by applying the IRR rule.

Year	Cash Flow
0	$	155,000
1		61,000
2		78,000
3		62,000

Requirement 1:

What is the project's IRR?

Requirement 2:
If the required return is 13 percent, should the firm accept the project?

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