Compute the internal rate of return of prospective project

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a) Compute the Internal Rate of Return (IRR) of the prospective project:

Estimated cash flows are $9,500 at the end of every year for 5 years.

Cost today is $43,000. SHOW ALL WORK on the TI BAII Plus Calculator FOR FULL CREDIT. Do not use excel and explain all the steps for the calculator.

b) Should the company accept the project if the company's cost of capital is 6%, and why or why not?

Reference no: EM132048693

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