Determine should the firm accept the project

Reference no: EM131975336

Question: A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 -$ 159,000 1 57,000 2 82,000 3 66,000

Requirement 1: What is the project's IRR? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return %

Requirement 2: If the required return is 15 percent, should the firm accept the project?

Reference no: EM131975336

Questions Cloud

How many times did the merchandise inventory turn over : Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during 2019?

Calculate the value of the preferred stock : A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred stock has been estimated.

Find the amount of the cash flow to creditors : A firm has earnings before interest and taxes of $27,130, net income of $16,220, and taxes of $5,450 for the year. While the firm paid out $31,600.

Determining the college savings plan : Armin's wonderful parents established a college savings plan for him when he was born. They deposited $63 into the account on the last day of each month.

Determine should the firm accept the project : A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 -$ 159,000 1 57,000 2 82,000 3 66,000. If the required return is 15 percent.

Determine the number of planes : Question: Given the following forecasted data, determine the number of planes that the company must produce in order to break even

What was the cost of goods manufactured during the year : What was the cost of goods manufactured during the year? What was the cost of goods sold during the year?

What is nino basis before deducting any of the loss : What is Nino's basis before deducting any of the loss? How much does Nino have at risk? How much of the loss is deductible and how much of the loss is suspended

Explain the types of ethical principles to make decisions : Most situations in organizations are complex as a simple solution will not address all the variables involved. Please think about the way in which you approach

User Account

All Pages