A firm evaluates all of its projects by applying the IRR rule. The required return for the following project is 21 percent. The IRR is _____ percent and the firm should ______ the project.     Year     cash flow        0      -$28,643       1         21,000       2         16,000       3          4,000   67 percent; reject 26 percent; accept 26 percent; reject 30 percent; accept 30 percent; reject

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
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Chapter26: Capital Investment Analysis
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A firm evaluates all of its projects by applying the IRR rule. The required return for the following project is 21 percent. The IRR is _____ percent and the firm should ______ the project.

    Year     cash flow

       0      -$28,643

      1         21,000

      2         16,000

      3          4,000

 

  1. 67 percent; reject
  2. 26 percent; accept
  3. 26 percent; reject
  4. 30 percent; accept
  5. 30 percent; reject
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