You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule

I should not accept the investment.

Explanation:

We can analyze the investment in the project by calculating the Net present value of the project. Net present value determines all today's value value of all net cash flows.

Net Present Value = [ ($152,00) x 1 ] + [ $71,800 x ( 1.155^-1 ) ] + [ $86,900 x ( 1.155^-2 ) ] + [ ($11,200) x ( 1.155^-3 ) ]

Net Present Value = ($152,00) + $62,165 + $65,141 + ($7,269) = ($31,963)

I should not accept the project because it is making a Negative net present value at required rate of return.

this project should be rejected since the IRR is negative (-2.07%) and it is obviously less than the required rate of return

Explanation:

using an excel spreadsheet an the IRR function, we can calculate the internal rate of return (IRR) to be -2.07

besides the fact that no one should accept a project with a negative IRR, the comparison test tells us to decide compare the project's IRR with the required rate of return:

we do not even need to calculate NPV since a negative IRR will always result in a negative NPV

if kj of heat is transferred o 1200 g liquid water at 36'c, what would the new temperature of the water be? (he specific heat capacity of liquid water is 4.186 j/g''c)

a. 15'c

b.100'c

c.51'c

d.36'c

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.