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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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