Required Return, Profitability Index, and NPV
Chapter 7 Practice Problems 16 & 25 16. IRR. Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses internal rate of return rule to accept or reject projects. Should this project be accepted if the required return is 12 percent? C0 C1 C2 C3 -$10,000 0 +$7,500 + $8,500