Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.
|
Time:
|
0 |
1 |
2 |
3 |
4 |
5 |
6 |
| Cash Flow |
-$5,300 |
$1,190 |
$2,390 |
$1,590 |
$1,590 |
$1,390 |
$1,190 |
Use the IRR decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)
IRR = _______%