I want to use the IRR rule to decide whether to accept a project that has...

I want to use the IRR rule to decide whether to accept a project that has cash flows of -205, 295, 311 and -435. What do you advise if the company has a required return of 12%? Should they accept or not and what is the IRR %?

Expert Solution

IRR is found using excel function with cash flows as the input

IRR = 14.44%

Screenshot with formulas

They should accept the project because the IRR (14.44%) is greater than the required return of 12%

jeff jeffy answered 2 years ago

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