For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 9 percent, should the firm accept this project? What if the required return was 21 percent?

In the previous problem

A firm evaluates all of its projects by applying the IRR rule. If the required return is 11 percent, should the firm accept the following project?

Year ___________Cash Flow

0 ...................... −$153,000

1 .......................... 78,000

2 .......................... 67,000

3 ......................... 49,000