Explore BrainMass

Explore BrainMass

    IRR - Marielle Machinery Works

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 9:08 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/irr-marielle-machinery-works-167888

    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.

    $2.19

    ADVERTISEMENT