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Consider a project with the following cash flows: 1) If your required return is 12 percent, would you accept this project? Justify your answer. 2)
Consider a project with the following cash flows:
1) If your required return is 12 percent, would you accept this project? Justify your answer.
2) Compute the internal rate of return (IRR). How many IRR exist? Can we make a right decision solely based on the IRR rule? Justify your answer.
| Year | 0 | 1 | 2 |
| Cashflow | -$48,000 | 71,000 | -13,000 |
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