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A firm evaluates all of its projects by applying the IRR rule. If the required return is 5%, should the firm accept the following project?

  1. A firm evaluates all of its projects by applying the IRR rule. If the required return is 5%, should the firm accept the following project?

Year

Cash Flow

0

-$100,000

1

$40,000

2

$40,000

3

$40,000

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