A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 162,000 -%24 54,000 1 85,000 2 69,000 3 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 12 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 162,000 -%24 54,000 1 85,000 2 69,000 3 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 12 percent, should the firm accept the project?
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 11PROB
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