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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 7 percent and that the maximum allowable

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 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.

Time/Cash Flow
0 –$6,800
1 $1,010
2 $2,210
3 $1,410
4 $1,410
5 $1,210
6 $1,010

Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

 

 

Should it be accepted or rejected?

Aug 12 2020 Read more Less More

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