Problem $13-25$ 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 $13$ percent, and that the maximum allowable payback and discounted payback statistics for your company are $2\mathrm{.}5$ and

$3\mathrm{.}0$ years, respectively.

Use the IRR decision rule to evaluate this project. $($Do not round intermediate calculations and round your final answer to $2$ decimal

places.$)$

IRR

Should it be accepted or rejected?

rejected

accepted