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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 Preview

    Here are the cash flows I have assumed -

    C0 = -10,000

    C1 = 0

    C2 = ...

    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.