Teddy Bear Planet Inc. has a project with the following cash flows: Year Cash flow ($) 0........

Question:

Teddy Bear Planet Inc. has a project with the following cash flows:
Year Cash flow ($)
0........ -$ 11,000
1.......... 5,500
2.......... 4,000
3......... 3,000
The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 8 percent, should the company accept the project?