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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project? YRS CASH FLOW 0. (26,000) 1. 11,000 2. 14,000 3. 10,000 IRR. 16.69% Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?
IRR----------- is----------- th-----------e r-----------ate----------- at----------- wh-----------ich----------- NP-----------V =----------- 0 -----------NPV----------- is----------- ca-----------lcu-----------lat-----------ed -----------by -----------dis-----------cou-----------nti-----------ng -----------the----------- fu-----------tur-----------e c-----------ash-----------flo-----------ws -----------PV -----------= C-----------/(1-----------+r)-----------^n -----------C ------------ Ca-----------shf-----------low----------- r ------------ I-----------nte-----------res-----------t r-----------ate----------- n ------------ N-----------o. -----------of -----------yea-----------rs -----------til-----------l