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A firm is considering a project that will require an immediate payment of $500. It will then produce four identical cash flows of $100. Then
A firm is considering a project that will require an immediate payment of $500. It will then produce four identical cash flows of $100. Then it will produce one last cash flow of $250. If the WACC of this firm is 10.0% and the cost of equity for this firm is 18.0%, should the firm accept or reject this project?
If you choose to accept, answer with the value of the IRR in percentage. If you choose to reject, write the value of the IRR as a negative percentage.
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