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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.

Time: 0 1 2 3 4 5 6

Cash flow –$9,500 $1,050 $2,250 $1,450 $1,450 $1,250 $1,050

Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

IRR %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428390

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