A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flow 0 1 2 3 $28,300 12,300 15,300 11,300 If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O No % Yes

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm evaluates all of its projects by applying the IRR rule. A project under consideration
has the following cash flows:
Year Cash Flow
0
1
23
2
3
$28,300
12,300
15,300
11,300
If the required return is 14 percent, what is the IRR for this project? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
IRR
Should the firm accept the project?
O No
%
Yes
Transcribed Image Text:A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year Cash Flow 0 1 23 2 3 $28,300 12,300 15,300 11,300 If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? O No % Yes
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