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Sierra Company is considering a long-term investment project called ZIP. ZIP will require an investment of $254,760. It will have a useful life of four
Sierra Company is considering a long-term investment project called ZIP. ZIP will require an investment of $254,760. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $169,840, and annual cash outflows would increase by $87,043. The company's required rate of return is12%. Calculate the internal rate of return on this project.(Round answer to 1 decimal place, e.g. 12.4%.)
Internal rate of return
%
Identify whether the project should be accepted or rejected.
The project should be
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