Fast Machines, Inc., has a project with the following cash flows. YEAR...............................................CASH FLOWS ($) 0......................................................$16,100 1.............................................................7,800 2.............................................................9,100

Question:

Fast Machines, Inc., has a project with the following cash flows.

YEAR...............................................CASH FLOWS ($)
0......................................................−$16,100
1.............................................................7,800
2.............................................................9,100
3.............................................................5,300
The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 9 percent, should the company accept the project?