Question: Question 8: Using the provided cash flow data, compute the Internal Rate of Return (IRR) and determine if the project is viable. Year Cash Flow
Question 8:
Using the provided cash flow data, compute the Internal Rate of Return (IRR) and determine if the project is viable.
Year | Cash Flow ($) |
0 | -$50,000 |
1 | $20,000 |
2 | $25,000 |
3 | $30,000 |
4 | $35,000 |
Requirements:
- Calculate the IRR of the project.
- Determine if the project should be accepted based on the IRR rule (assuming the required rate of return is 10%).
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