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A firm evaluates all of its projects by applying the irr rule. year cash flow 0 −$157,300 1 74,000 2 87,000 3 46,000 a. 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.) b. if the required return is 11 percent, should the firm accept the project?
A firm evaluates all of its projects by applying the irr rule. year cash flow 0 −$157,300 1 74,000 2 87,000 3 46,000 a. 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.) b. if the required return is 11 percent, should the firm accept the project?
Based on thecashflowsfor thefirmthen itsIRRcan be found to be16.26%.With the givenrequired return, thefirmshouldaccept project.What is the IRR?The IRR can be found using aSpreadsheetwith theIRR function:= 16.26%Should the project be accepted?TheIRR ruleis that if the IRR isgreaterthan the project's required return,the firm canacceptthe project.TheIRR of 16.26%isgreaterthan the required return of 11% so the firm shouldacceptthis project.Find out more onIRRatbrainly.com/question/14407038....
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