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IRR - Marielle Machinery Works

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Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return rule to accept or reject projects. Should this project be accepted if the required return is 12 percent?

Co - $10,000/ C1 0/ C2+$7,500 / C3 + $8,500

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Solution Summary

Using step by step methods and equations, this solution calculates IRR and uses this information to determine if the project should be accepted or not.

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Here are the cash flows I have assumed -

C0 = -10,000

C1 = 0

C2 = ...

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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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