A firm evaluates all of its projects by applying the IRR rule.
Year Cash Flow
0 -$ 149,000
1 67,000
2 72,000
3 56,000
a. What is the project's IRR?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. If the required return is 16 percent, should the firm accept the project?
Internal rate of return
Project acceptance