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. Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this

. Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively.

  cash flow4.jpg

. Use the IRR decision rule to evaluate this project; should it be accepted or rejected and why?   

cash flow4.jpg

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