Consider this project with an internal rate of return of 13.1%. Should you accept or reject the

Question:

Consider this project with an internal rate of return of 13.1%. Should you accept or reject the project if the discount rate is 12%? What is project NPV?

YearCash Flow

0................+$100

1...................-60

2...................-60

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...