Firm is considering investing in project with cash flows

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Reference no: EM131972601

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Time: 0 1 2 3 4 5 6 Cash flow –$6,800 $1,140 $2,340 $1,540 $1,540 $1,340 $1,140 Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

Reference no: EM131972601

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