Question
Teddy Bear Planet Inc. has a project with the following cash flows: Year Cash Flows ($) 0 -$ 13,000 1 6,300 2 4,800 3 3,800
Teddy Bear Planet Inc. has a project with the following cash flows:
| Year | Cash Flows ($) | |
| 0 | -$ | 13,000 |
| 1 | 6,300 | |
| 2 | 4,800 | |
| 3 | 3,800 | |
The company evaluates all projects by applying the IRR rule.
a. Calculate the IRR. (Do not round intermediate calculations and round the answer to 2 decimal places.)
IRR %
b. If the appropriate interest rate is 8 percent, should the company accept the project?
multiple choice
Yes
No
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Infrastructure Planning And Finance
Authors: Vicki Elmer, Adam Leigland
1st Edition
0415693187, 978-0415693189
