A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: 
Year  Cash Flow  
0  –$  28,700  
1  12,700  
2  15,700  
3  11,700  
If the required return is 15 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 
Should the firm accept the project? 

Project  
IRR is the rate at which NPV =0  0  
IRR  19.00%  
Year  0  1  2  3 
Cash flow stream  28700.000  12700.000  15700.000  11700.000 
Discounting factor  1.000  1.190  1.416  1.685 
Discounted cash flows project  28700.000  10671.867  11085.953  6942.181 
NPV = Sum of discounted cash flows  
NPV Project =  1.33123E07  
Where  
Discounting factor =  (1 + discount rate)^(Corresponding period in years)  
Discounted Cashflow=  Cash flow stream/discounting factor  
IRR=  19.00% 
Yes, required rate of return is less than IRR
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