Question
Teddy Bear Planet Inc. has a project with the following cash flows: Year Cash Flows ($) 0 -$ 14,000 1 6,700 2 5,200 3 4,200
Teddy Bear Planet Inc. has a project with the following cash flows:
| Year | Cash Flows ($) | |
| 0 | -$ | 14,000 |
| 1 | 6,700 | |
| 2 | 5,200 | |
| 3 | 4,200 | |
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?
-
Yes
-
No
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Keisters Corporation Accounting And Auditing
Authors: David Armel Keister
1st Edition
1019058382, 978-1019058381
