Problem 8-5 Calculating IRR [LO 3]

A firm evaluates all of its projects by applying the IRR rule.

Year	Cash Flow
0	$	163,000
1		53,000
2		86,000
3		70,000

Requirement 1:

What is the project's IRR? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Internal rate of return

%

Requirement 2:

If the required return is 12 percent, should the firm accept the project?

(Click to select)NoYes