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Internal Rate of Return

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1. IRR. 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?

C0 C1 C2 C3
-$10,000 0 +$7,500 +$8,500.

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Internal rate of return is investigated in the solution.

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