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    Evaluating a Project using NPV

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    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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    Solution Preview

    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.