Let irr be x%
At irr,present value of inflows=present value of outflows.
156,000=60,000/1.0x+79,000/1.0x^2+63,000/1.0x^3
Hence x=irr=13.98%(Approx).
Hence since irr is less than required return;project must be rejected.
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow O...
A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 $ 164,000 52,000 87,000 71,000 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?
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A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 147,000 -$ 0 69,000 1 70,000 2 54,000 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 16 percent, should the firm accept the project?
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A firm evaluates all of its projects by applying the IRR rule. Year © 1 2 3 Cash Flow -$157,000 59,000 80,000 64,000 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 15 percent, should the firm accept the project? (Click to select)
A firm evaluated all of its projects by applying the IRR rule. Year. Cash flow 0. -$156,000 1. 60,000 2. 79,000 3. 63,000 What is the projects IRR? [ do not round intermediate calculations and enter answer as a percent round to 2 decimal places] if the required return is 15 percent, should the firm accept the project?
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