A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash Flow IRR -$28,800 If the required return is 13 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.) 12,800 15,800 11,800 Yes No % Should the firm accept the project?
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash Flow IRR -$28,800 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 12,800 15,800 11,800 Yes No % Should the firm accept the project?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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![A firm evaluates all of its projects by applying the IRR rule. A project under consideration
has the following cash flows:
Year
0
1
2
3
Cash Flow
IRR
-$ 28,800
12,800
15,800
11,800
If the required return is 13 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.)
Should the firm accept the project?
Yes
%
O No](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbca41dc-ac4e-4d48-a124-74d4f5a72147%2F78629115-729e-4f43-8880-81f6f4610561%2Fnp30m9r_processed.png&w=3840&q=75)
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
0
1
2
3
Cash Flow
IRR
-$ 28,800
12,800
15,800
11,800
If the required return is 13 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.)
Should the firm accept the project?
Yes
%
O No
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