You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule

Answer and Explanation:

Given:

Investment cost = $152,000

Projected cash flows = $71,800, $86,900, -$11,200

Rate of return = 15.5% = 15.5 / 100 = 0.155

The internal rate of return is really a way of describing an overall project cost in a ratio rather than in a monetary sum.

Also, in this case, we cannot use the IRR method because cash flow trend changes.

So, we cannot use the IRR method in this situation.

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.

answer; balance sheets;