Question

A firm evaluates all of its projects by applying the irr rule. year cash flow 0 −$157,300 1 74,000 2 87,000 3 46,000 a. what is the project's irr? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if the required return is 11 percent, should the firm accept the project?

Answer 1

Based on the cashflows for the firm then its IRR can be found to be 16.26%. With the given required return, the firm should accept project.

What is the IRR?

The IRR can be found using a Spreadsheet with the IRR function:

= 16.26%

Should the project be accepted?

The IRR rule is that if the IRR is greater than the project's required return, the firm can accept the project.

The IRR of 16.26% is greater than the required return of 11% so the firm should accept this project.

Find out more on IRR at brainly.com/question/14407038.