You are considering an investment with the following cash flows. If the required rate of return for

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You are considering an investment with the following cash flows. If the required rate of return for this investment is 8%, should you accept it based solely on the internal rate of return rule? Why or why not?

1. $-117,900

2. 96,800

3. -8,500

4. 62,000

Related Book For answer-question

Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Posted Date: Mar 22, 2023 01:06 AM

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You are considering an investment with the following cash flows. If the required rate of return for

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Answer To determine whether you should accept the investment based solely on the internal rate of return IRR rule you need to calculate the IRR of the cash flows and compare it to the required rate of ... View the full answer

Engineering Economy

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