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Company ABC forecasts the following cash flows on a project under consideration. A 10,000$ cost in the first instance, followed by 7,500$ and 8,500$ cash
Company ABC forecasts the following cash flows on a project under consideration. A 10,000$ cost in the first instance, followed by 7,500$ and 8,500$ cash flows at end of years 2 and 3, respectively.
- Company ABC would like to use the internal rate of return rule to accept or reject a project. Please provide two reasons this project can use the IRR rule to evaluate the project?
- Should this project be accepted if the required return is 12%? ( Use trial-and-error method)
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