$26.$ Problems with IRR A project has the following cash flows:

Year

$0$

$1$

$2$

Cash Flow

$$83,000$

$-57,000$

$-44,000$

What is the IRR for project? If the required return is $12$ percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is $0$ percent? $24$ percent? What is going on here? Sketch the NPV profile to help you with your answer.