Question
Green Tree Industries uses the IRR rule to evaluate projects. A potential investment in fixed assets will require an initial $147,000. Ive the next tree
Green Tree Industries uses the IRR rule to evaluate projects. A potential investment in fixed assets will require an initial $147,000. Ive the next tree years, it will deliver positive Cash Flows of $69,000, $70,000, and $54,0000.
a. What is the project's IRR?
b. If the required return is 16%, should the firm accept the project?
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Public Finance In Theory And Practice
Authors: Richard Abel Musgrave, Peggy B. Muscrave
5th Edition
0070441278, 978-0070441279
