You are considering an investment with the following cash fl
You are considering an investment with the following cash flows. If the required rate of return for this investment is 13.5%, should you accept it based solely on the internal rate of return rule? Why or why not?
Cash Flow -$12,000 S 5,500 S 8,000 1,500 ear
Solution
IRR = 0 since the sum of cash inflows = sum of cash outflows
so reject the project
