Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR, and should the firm accept the project based on IRR if its WACC is 13.00%? Year 0 1 2 3 Cash flows -$1,100 $450 $470 $490 13.31%; Accept 13.31%; Reject -14.64%; Reject 11.98%; Accept 11.98%; Reject

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Kiley Electronics is considering a project that has the following cash flow data. What
is the project's IRR, and should the firm accept the project based on IRR if its WACC
is 13.00%?
Year
0
1
2
3
Cash flows
-$1,100
$450
$470
$490
13.31%; Accept
13.31%; Reject
-14.64%; Reject
11.98%; Accept
11.98%; Reject
Transcribed Image Text:Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR, and should the firm accept the project based on IRR if its WACC is 13.00%? Year 0 1 2 3 Cash flows -$1,100 $450 $470 $490 13.31%; Accept 13.31%; Reject -14.64%; Reject 11.98%; Accept 11.98%; Reject
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