applying the IRR rule

1. Firm evaluates all of its projects by applying the IRR rule.

Year Cash Flow

0 –$ 150,000

1 66,000

2 73,000

3 57,000

 

Requirement 1:

What is the project’s IRR? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 

Internal rate of return ______ %

 

Requirement 2:

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

Yes or No