Question
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 | $ | 28,000 | |
| 1 | 12,000 | ||
| 2 | 15,000 | ||
| 3 | 11,000 | ||
If the required return is 16% what is the IRR for this project? (Round the final answer to 2 decimal places.)
IRR %
Should the firm accept the following project?
Accept
Reject
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Introduction To Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen
2nd Edition
0072922990, 9780072922998
