
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A firm evaluates all of its projects by applying the IRR rule.
Year
0
1
2
3
Cash Flow
-$ 41,000
20,000
23,000
14,000
a. What is the project's IRR?
Note: 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 14 percent, should the firm accept the project?
a. Internal rate of return
b. Project acceptance
%
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