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Do you accept this project with the estimated required rate of return being 8.5%? You will...

Do you accept this project with the estimated required rate of return being 8.5%? You will use IRR as the measure.
Time 0 1 2 3 4
Total CFs -1,250 325 485 435 425
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Answer #1
Year Cash flow
0 -1250
1 325
2 485
3 435
4 425
IRR= 12.24% <<using excel formula>>
Since IRR is higher than required rate therefore project should be accepted.

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