Problem

Calculating IRR Teddy Bear Planet, Inc., has a project with the following cash flows Y...

Calculating IRR Teddy Bear Planet, Inc., has a project with the following cash flows

Year

Cash Flows ($)

0

‒$11,000

1

15,500

2

4,000

3

3,000

The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 8 percent, should the company accept the project?

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