Question

A firm evaluates all of its projects by applying the IRR
rule.

Year | Cash Flow | |

0 | –$ | 148,000 |

1 | 68,000 | |

2 | 71,000 | |

3 | 55,000 | |

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.)**

Internal rate of return
%

If the required return is 16 percent, should the firm accept the
project?

Answer #1

IRR is the rate at which PV of Cash inflows are equal to PV of Cash outflows

IRR = Rate at which least +ve NPV + [ NOv at that rate / change in NPV due to 1 % in rate ] * 1%

= 15% + [ 980.03 / 2358.60 ] * 1%

= 15% + 0.42%

= 15.42%

iF iIRR required is 16%, reject the project as it is not giving that IRR

A firm evaluates all of its projects by applying the IRR
rule.
Year
Cash Flow
0
–$
149,000
1
67,000
2
72,000
3
56,000
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.)
Internal rate of return
%
If the required return is 16 percent, should the firm accept the
project?

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?
Yes
No

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
–$
28,100
1
12,100
2
15,100
3
11,100
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.)

Calculating IRR. A firm evaluates all its
projects by applying the IRR rule.
Year
Cash flow
0
-70000
1
41000
2
20000
3
30000
1. The IRR for the following project is ______%.
2. Should they accept the project if the required return is 14%?
(yes or no)?
3. Usiing a finnancial calculator please show and explain
work.

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rule. If the required return is 11 percent, should the firm accept
the following project?
Year
Cash Flow
0
$-168,000
1
86,000
2
91,000
3
53,000

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decision rule. A project under consideration has the following cash
flows:
Year
Cash Flow
0
–$
28,300
1
12,300
2
15,300
3
11,300
１.What is the NPV for the project if the required return is 11
percent? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
NPV
2.At a required return of 11
percent, should the firm accept this project?
Yes
No...

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(Do not round intermediate calculations and round your answer to 2
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Year
Cash Flow
0
–$
28,800
1
12,800
2
15,800
3
11,800
What is the NPV for the project if the required return is 10
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Cash Flow
0
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1
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15,500
3
11,500
What is the NPV for the project if the required return is 10
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NPV
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At a required return of 10 percent, should the firm accept...

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Year
Cash Flow
0
–$
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2
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3
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