Calculating IRR A project has the following cash flows: Year 0 1 2 Cash Flow $74,000 - 49,000 - 41,000 What is the IRR for this project? If the required return is 12 percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is zero percent? 24 percent? What is going on here? Sketch the NPV profile to help you with your answer. NDV

Calculating IRR A project has the following cash flows: What is the IRR for this project? If the required return is 12 percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is zero percent? 24 percent? What is going on here? Sketch the NPV profile to help you with your