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Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: Cash flow 0: $3,200 1: $950 2: $930 3: $820 4: $600 5: $400. IRR _______ % Should the project be accepted or rejected?

Respuesta :

The IRR of project E given its cash flow is 5.82%.

The project should be rejected.

What is the IRR?

The internal rate of return is a capital budgeting method that is used to determine if a project is profitable. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calculator:

Cash flow in year 0 = -3200

Cash flow in year 1 = 950

Cash flow in year 2 = 930

Cash flow in year 3 = 820

Cash flow in year 4 = 600

Cash flow in year 5 = 400

IRR = 5.82%

The project should not be accepted because the IRR of the project is less than the cost of capital of the project.

To learn more about IRR, please check: https://brainly.com/question/26484024

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