What is the project's IRR?

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
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A firm evaluates all of its projects by applying the IRR rule.
Year
Cash Flow
164,000
52,000
1
2
87,000
71,000
3
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
%
the required return is 12 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 164,000 52,000 1 2 87,000 71,000 3 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 % the required return is 12 percent, should the firm accept the project?
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