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mauvedog224Lv1
28 Sep 2019
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 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively.
Time: 0 1 2 3 4 5
Cash flow â$234,000 $65,700 $83,900 $140,900 $121,900 $81,100
Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
IRR %
Should it be accepted or rejected?
Rejected
Accepted
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 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively.
Time: 0 1 2 3 4 5
Cash flow â$234,000 $65,700 $83,900 $140,900 $121,900 $81,100
Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
IRR %
Should it be accepted or rejected?
Rejected
Accepted
Nestor RutherfordLv2
28 Sep 2019