Question
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
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 2.0 and 3.0 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow: $7,100 $1,000 $2,200 $1,400 $1,400 $1,200 $1,000 Use the IRR decision rule to evaluate this project.
Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow: | $7,100 | $1,000 | $2,200 | $1,400 | $1,400 | $1,200 | $1,000 |
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.)
what is the IRR%?
Should it be accepted or rejected? multiple choice
rejected
accepted
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