Question
Teddy Bear Planet Inc. has a project with the following cash flows: Year Cash Flows ($) 0 $ 11,000 1 5,500 2 4,000 3 3,000
Teddy Bear Planet Inc. has a project with the following cash flows:
| Year | Cash Flows ($) | |
| 0 | $ | 11,000 |
| 1 | 5,500 | |
| 2 | 4,000 | |
| 3 | 3,000 | |
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Lifestyle Investor
Authors: Justin Donald, Ryan Levesque, Mike Koenigs
1st Edition
1636800130, 978-1636800134
