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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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Solution Summary

Excel file contains calculation of internal rate of return and evaluate the project on the basis of IRR.

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