Question: Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0-$27,800

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule.

Year

Cash Flow

0-$27,800

111,800

214,800

310,800

What is the IRR for this project?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

IRR_____%

If the appropriate interest rate is 18 percent, should the company accept the project?

Yes or No

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Write a procedure named PackedToAsc that converts a 4-byte packed decimal number to a string of ASCII decimal digits. Pass the packed number to the procedure in EAX, and pass a pointer to a buffer...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0 $ 27,000 1 11,000 2 14,000 3 10,000 What is the IRR for...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0 28,900 12,900 15,900 11,900 2 What is the IRR for this...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0 $ 28,500 12,500 15,500 11,500 What is the IRR for this...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0 $ 27,700 1 11,700 2 14,700 3 10,700 What is the IRR for...

58. Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. Year Cash Flow 0 $ 28,400 1 12,400 2 15,400 3 11,400 What is the IRR...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. The IRR for the following project is ___ percent. If the appropriate...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. The IRR for the following project is __x__ percent. If the appropriate...

Pluto Planet, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. The IRR for the following project is ??? percent. If the appropriate...

Fast Machines, inc. has a project with the following cash flows. The company evaluates all projects by applying the IRR rule. year cash flow 0 -$27, 500 1 11,500 2 14,500 3 10, 500 A/ What is the IRR...

Calculating IRR. Pluto Planet, Inc., has a project with the following cash flows. YEAR CASH FLOWS ($) 0 -$9,000.00 1 $53.00 2 $3,600.00 3 $1,900.00 The company evaluates all projects by applying the...

The major advantage of debt financing is: a. It allows a firm to use creditors money. b. Interest payments are more predictable than dividend payments. c. Interest payments are not required when a...

Monthly payments on a $155,000 mortgage are based on an interest rate of 6.6% compounded semiannually and a 30-year amortization. If a $5000 prepayment is made along with the thirty-second payment:...

04.01-PR003 Match the measures of worth in the first column with an appropriate decision rule for preferring a project over do nothing." Measure of Worth (a) Annual worth (b) Benefit-cost ratio...

Using FRED data, compare the recessions of 2000, 2008 and 2020 1 . Given the data on quarterly real GDP growth from 1999 through 2001, from 2007 through 2009, and 2019 to 2021, list the recessions in...

Sven and Abigail began a business of acquiring valuable artworks and antiques and selling them online in December 2019, using their website SGartandantiques.com. The net income of the activity...

Some of these projections are of the same molecule. Some are a different molecule. Please select all conformers that are of the same molecule. There is only one molecule represented by two or more...

Iphansi Flooring has sales of R6,000,000, fixed costs of R1,900,000 and variable costs equal to 40% of sales. It has debt worth R2,500,000 at an interest rate of 12% and a target capital structure of...

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Discuss this from a value chain management perspective. What happened? How did it happen? Why did it happen?

Describe the operations management issues that the Dreamliner team faced. Could these issues have been avoided? Why or why not?

What role does technology play in managing an organizations operations? (Take a look back at the Technology and the Managers Job box on p. 487.)