A firm evaluates all of its projects by applying the IRR rule. If the required return is

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A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, should the firm accept the following project?

Year Cash Flow

0 ................ -$130,000

1 ..................... 68,000

2 ..................... 71,000

3 ..................... 54,000

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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Apr 24, 2012 07:26 AM

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A firm evaluates all of its projects by applying the IRR rule. If the required return is

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The IRR is the interest rate that makes the NPV of the project equal to zero So th...View the full answer

Essentials Of Corporate Finance

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