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Question: Calculating IRR. A project has the following cash flows:

Year           Cash Flow

0                 $91,000

1                 -55,000

2                 -46,000

What is the IRR for this project? If the required return is 10 percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is 0 percent? 24 percent? What is going on here? Sketch the NPV profile to help you with your answer.

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