Calculating IRR [L05] A ?rm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the ?rm accept the following project? 8. Calculating NPV [L01] For the cash ?ows in the previous problem, suppose the ?rm uses the NPV decision rule. At a required return of 11 percent, should the ?rm accept this project?
What if the required return is 24 percent?