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Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do...

Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow −$1,800 $670 $720 $680 $460 $260

IRR?

Should the project be accepted or rejected?

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Answer #1
Period Cash Flow
0 -1800
1 670
2 720
3 680
4 460
5 260
IRR 19%

using IRR funtion in Finance calculator IRR is  19.38%

Project Must be accepted since IRR is greater than cost of capital

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