A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 1 2 3 Cash Flow -$ 27,600 11,600 14,600 10,600 If the required return is 18 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O No O Yes

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 1 2 3 Cash Flow -$ 27,600 11,600 14,600 10,600 If the required return is 18 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O No O Yes

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 15PROB

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