A firm evaluates all of its projects by applying the IRR rule. A project under considerationhas the following cash flows:Year0Cash Flow-$ 27,800111,800-23314,80010,800If the required return is 18 percent, what is the IRR for this project? (Do not roundintermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)IRR%

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Answered: A firm evaluates all of its projects by…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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