Calculate the irr of the enrique project

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Iglesias Corp. is considering investing in a new project, code-named Enrique, which has a 6-year life. Below are the expected cash flows from today through the six years (C0-C6).

C0

C1

C2

C3

C4

C5

C6

-40,000

5,000

3,000

2,000

10,000

22,000

24,000

1. Calculate the IRR of the Enrique project.

2. If the firm has a hurdle rate of 8 percent, explain whether the firm should go ahead with the Enrique project or not. 

Reference no: EM133114038

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