Market rate of return for a project

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A project which has an outlay of $407,328 will provide a cash flow of $80,000 for 15 years.

i) What is the IRR?

ii) If your required rate of return is 32 per cent calculate the NPV and determine whether you should accept the project?

iii) If you have arbitrarily set the required return at 32 per cent but the market rate of return for a project with this level of risk is 16 per cent should the project be accepted?

Reference no: EM132494413

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