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Internal Rate of Return for Marielle Machinery Works

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IRR. Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return to accept or reject projects. Should this project be accepted if the required return is 12%?
C 0= $-10,000, C 1=0, C2 = +$7,500, C 3= +$8,500

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Solution Summary

This explains the computation of internal rate of return with the help of an example in an attached Excel file.

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Chart of Net cash flows

Year Cash ...

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