Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 13 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time: 012345 Cash flow: -$344,000 $64,800 $83,000 $140,000 $121,000 $80,200 Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) As a percent

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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Suppose your firm is considering investing in a project with the cash flows shown below, that the
required rate of return on projects of this risk class is 13 percent, and that the maximum allowable
payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time:
012345 Cash flow: -$344,000 $64,800 $83,000 $140,000 $121,000 $80,200 Use the IRR decision
rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2
decimal places.) As a percent
Transcribed Image Text:Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 13 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively. Time: 012345 Cash flow: -$344,000 $64,800 $83,000 $140,000 $121,000 $80,200 Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) As a percent
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