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ABC PHARMACEUTICAL CORP. IS PLANNING ON UNDERTAKING A NEW PROJECT. THE INITIAL CASH OUTLAY IS $50,000, WITH PROJECTED CASH INFLOWS OF 20,000 PER YEARFOR THE

ABC PHARMACEUTICAL CORP. IS PLANNING ON UNDERTAKING A NEW PROJECT. THE INITIAL CASH OUTLAY IS $50,000, WITH PROJECTED CASH INFLOWS OF 20,000 PER YEARFOR THE PROJECTS 4 YEAR LIFE. ASSUMING A COST OF CAPITAL OF 10%, WHAT IS THE IRR? SHOULD THIS COMPANY ACCEPT THE PROJECT?

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