Question
Year Cash Flow 0 -27,000 1 53,000 2 -7000 3 -20000 4 3000 a.) Should the firm accept this project if the required return is
Year Cash Flow 0 -27,000 1 53,000 2 -7000 3 -20000 4 3000
a.) Should the firm accept this project if the required return is 11%? Why?
b.) Will you accept the project based on IRR decision rule? Why?
c.) If cost of capital of the firm is 5%, calculate the MIRR.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
