A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year O 1 2 3 Cash Flow -$27,900 11,900 14,900 10,900 If the required return is 18 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.) Answer is complete but not entirely correct.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
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A firm evaluates all of its projects by applying the IRR rule. A project under consideration
has the following cash flows:
Year
O
1
2
3
Cash Flow
-$ 27,900
11,900
14,900
10,900
If the required return is 18 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.)
IRR
X Answer is complete but not entirely correct.
5.84 X %
2
Transcribed Image Text:A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year O 1 2 3 Cash Flow -$ 27,900 11,900 14,900 10,900 If the required return is 18 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.) IRR X Answer is complete but not entirely correct. 5.84 X % 2
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