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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 $28,000
1 $12,000
2 $15,000
3 $11,000

1.) If the required return is 14 percent, what is the IRR for this project?

2.) Should the firm accept the project?

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