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Evaluating a Project using NPV

Consider this project with an internal rate of return of 13.1 percent. Should you accept or reject the project if the discount rate is 12%?

Year Cash Flow
0 +$100
1 -60
2 -60

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If the IRR is higher than the discounting rate then the project should be accepted since it implies a positive ...

Solution Summary

The solution explains how to evaluate an investment decision.

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