A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 1 2 3 -$ 153,000 63,000 76,000 60,000 What is the project's IRR? (Do not round intermediate calculations and enter yo answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 13 percent, should the firm accept the project?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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A firm evaluates all of its projects by applying the IRR rule.
Year
Cash Flow
0
1
2
3
-$
153,000
63,000
76,000
60,000
What is the project's IRR? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%
If the required return is 13 percent, should the firm accept the project?
Transcribed Image Text:A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 1 2 3 -$ 153,000 63,000 76,000 60,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 13 percent, should the firm accept the project?
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