16. IRR/NPV. Consider the following project with an internal rate of return of 13.1%. (LO8-2) Year 0 1 2 Cash Flow +$100 -60 -60 a. Should I you accept or reject the project if the discount rate is 12%? b. What is project NPV?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...
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16. IRR/NPV. Consider the following project with an internal rate of return of 13.1%. (LO8-2)
Year
1
2
Cash Flow
+$100
-60
-60
a. Should you accept or reject the project if the discount rate is 12%?
b. What is project NPV?
Transcribed Image Text:16. IRR/NPV. Consider the following project with an internal rate of return of 13.1%. (LO8-2) Year 1 2 Cash Flow +$100 -60 -60 a. Should you accept or reject the project if the discount rate is 12%? b. What is project NPV?
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