Question - Calculating IRR
Pluto Planet, Inc., has a projected with the following cash flows.
|
YEAR
|
CASH FLOWS ($)
|
|
0
|
-$9,000
|
|
1
|
5,300
|
|
2
|
3,600
|
|
3
|
1,900
|
The company evaluates all projects by applying the IRR rule. If the appropriate interest rate is 8 percent, should the company accept the project?