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Should the firm accept the project

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A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?

0 = - $26,000 + $11,000/(1+IRR) + $14,000/(1+IRR)^2 + $10,000/(1+IRR)^3 

IRR = 16.69%

The firm should accept the project because the IRR is higher than the return required.

The information needed is above and attached. I need the answer to the question below.

For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?

Reference no: EM131435059

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