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Cookie Dough Manufacturing has has the following cashflow from a project. If the required rate of return is 10% will you accept the project based
Cookie Dough Manufacturing has has the following cashflow from a project. If the required rate of return is 10% will you accept the project based on the IRR?
0 | 1 | 2 | 3 |
-32000 | 10,700 | 11,550 | 15,500 |
IRR is 6%, which is less than the required rate of return of 10%. So reject. | ||
IRR is 11.29%, which is greater than the required rate of return of 10%. So accept | ||
IRR is 8.19%, which is less than the required rate of return of 10%. So reject. | ||
IRR is 12.66%, which is greater than the required rate of return of 10%. So accept. |
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