Schaueffle Machines, Inc., has a project with the following cash flows. The company
evaluates all projects by applying the IRR rule.
Year Cash Flow
0 -$28,700
1 12,700
2 15,700
3 11,700
a. What is the IRR for this project? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. If the appropriate interest rate is 15 percent, should the company accept the project?
a. IRR %
b. Accept project