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Edelen Enterprises is evaluating a new product with the following cash flows in Years 0, 1, and 2 (respectively): 85, 125, 15 If the company
Edelen Enterprises is evaluating a new product with the following cash flows in Years 0, 1, and 2 (respectively): 85, 125, 15
- If the company requires a 10% return on investment, should it accept the project? Why?
- Compute the IRR for this project. If you apply the IRR rule, should you accept or reject this project? Explain.
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