A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow -$157,300 74,000 87,000 46,000 a. 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.) b. If the required return is 11 percent, should the firm accept the project? a. Internal rate of return b. Project acceptance 0123

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 19PROB
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A firm evaluates all of its projects by applying the IRR rule.
Year
Cash Flow
-$157,300
74,000
87,000
46,000
1
3.
a. 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.)
b. If the required return is 11 percent, should the firm accept the project?
Internal rate of return
%
a.
b. Project acceptance
2 of 14
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Transcribed Image Text:Y Buff Portal The Promotional El... dareb... k - Chapter 8 6 Saved A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow -$157,300 74,000 87,000 46,000 1 3. a. 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.) b. If the required return is 11 percent, should the firm accept the project? Internal rate of return % a. b. Project acceptance 2 of 14 Next > Prev
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