Question: Problems with IRR Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows: Year Cash Flow 0 $63,000,000 1 89,000,000 2
"Problems with IRR Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows:
Year Cash Flow 0 $63,000,000 1 89,000,000 2 11,000,000
If the project has a required return of 10 percent, should it accept this project? Why? Compute the IRR for this project. How many IRRs are there? If you apply the IRR decision rule, should you accept the project or not? Whats going on here?"
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