A firm has a project with the following cash flows: Year Cash Flow 0 -$ 28,100 1 12,100 2 15,100 3 11,100 The appropriate discount rate is 15 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? Reject Accept
A firm has a project with the following cash flows: Year Cash Flow 0 -$ 28,100 1 12,100 2 15,100 3 11,100 The appropriate discount rate is 15 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? Reject Accept
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
![A firm has a project with the following cash flows:
Year
Cash Flow
0
-$ 28,100
1
12,100
2
15,100
3
11,100
The appropriate discount rate is 15 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?
Reject
Accept](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F902e7e06-dd9d-47fe-961b-7a721406cdf1%2Ff30b9294-2b7f-464a-9e6c-a89ad0d518f9%2Fkwzq63o_processed.png&w=3840&q=75)
Transcribed Image Text:A firm has a project with the following cash flows:
Year
Cash Flow
0
-$ 28,100
1
12,100
2
15,100
3
11,100
The appropriate discount rate is 15 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?
Reject
Accept
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