A firm evaluates all of its projects by applying the IRR rule. The IRR for the f

Question

A firm evaluates all of its projects by applying the IRR rule. The IRR for the following project ispercent. If the cost of capitalis 22 percent, the firm should(Click to select)rejectacceptthe project. Assume that a cash flow that is expected in year X is expected in X years.

A firm evaluates all of its projects by applying the IRR rule. The IRR for the following project ispercent. If the cost of capitalis 22 percent, the firm should(Click to select)rejectacceptthe project. Assume that a cash flow that is expected in year X is expected in X years.

Year Expected Cash Flow 0 ?$35,564 1 24,000 2 17,000 3 10,000

Explanation / Answer

Cash flow Factor @ 22% PV@22% (35,564.00) 1.00 (35,564.00) 24,000.00 0.82 19,672.13 17,000.00 0.67 11,421.66 10,000.00 0.55 5,507.07 1,036.86 Cash flow Factor @ 24% PV@24% (35,564.00) 1.00 (35,564.00) 24,000.00 0.81 19,354.84 17,000.00 0.65 11,056.19 10,000.00 0.52 5,244.87 91.90 Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

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