# Question: Compute the IRR statistic for Project E and note whether

Compute the IRR statistic for Project E and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 8percent.

## Answer to relevant Questions

Compute the IRR statistic for project F and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12percent.How many possible IRRs could you find for the following set of cash flows?Use the PI decision rule to evaluate this project; should it be accepted orrejected?Construct an NPV profile and determine EXACTLY how many nonnegative IRRs you can find for the following set of cashflows:Would it be worth it to incur a compensating balance of $7,500 in order to get a 0.65-percent-lower interest rate on a two-year, pure discount loan of $150,000?Post your question