Question: Teddy Bear Planet Inc. has a project with the following cash flows: Year Cash flow ($) 0........ -$ 11,000 1.......... 5,500 2.......... 4,000 3......... 3,000

Teddy Bear Planet Inc. has a project with the following cash flows:
Year Cash flow ($)
0........ -$ 11,000
1.......... 5,500
2.......... 4,000
3......... 3,000
The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 8 percent, should the company accept the project?

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