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

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

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