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IRR:

a) Compute the Internal Rate of Return (IRR) of the prospective project:

Estimated cash flows are $9,500 at the end of every year for 5 years.

Cost today is $43,000. SHOW ALL WORK on the TI BAII Plus Calculator FOR FULL CREDIT.

b) Should the company accept the project if the company's cost of capital is 6%, and why or why not?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92882626

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