Problem $13-19$ IRR $($LG$13-4)$

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of

this risk class is $9$ percent, and that the maximum allowable payback and discounted payback statistics for the project are $2\mathrm{.}0$ and $3\mathrm{.}0$

years, respectively.

Use the IRR decision rule to evaluate this project. $($Negative amount should be indicated by a minus sign. Round your answer to $2$

decimal places.$)$

IRR

Should it be accepted or rejected?

accepted

rejected