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A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flow 0

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:
Year Cash Flow
0 $ 27,000
1 11,000
2 14,000
3 10,000

If the required return is 16 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

IRR:__?__%

Should the firm accept the project?

multiple choice
  • Yes

  • No

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