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Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows
Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.
Answer choices:
a) 10% reject
b) 10% accept
c) 13.26% reject
d) 13.26 accept
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | 75 | 75 | 0 | 100 | 75 | 50 |
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