Compute its projected internal rate of return

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Reference no: EM131559670

You are evaluating a new potential project. You compute its projected internal rate of return (1RR), which equals 18%. The required rate of return for similarly risky projects is 15%.

You now learn that the R&D costs for the project, which were incurred over the previous year, equal $10M. With those costs included, the IRR for the project would be 12%.

Should you proceed with the project? Explain your reasoning.

Reference no: EM131559670

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