Use the irr decision rule to evaluate this project

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Reference no: EM132007120

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 7 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 -$5,300 $1,190 $2,390 $1,590 $1,590 $1,390 $1,190

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.)

IRR = _______%

Reference no: EM132007120

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