The Acorn Project will require an initial cash outflow of $25,000. The project is
expected to return $8,000, $10,000, and $14,000 in years one, two, and three,
respectively. The project has a required rate of return of 15%. Use the internal rate of
return evaluation technique to determine whether or not this project should be
accepted. Explain your answer.

Question

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The Answer of The Acorn Project will require an initial cash outflow of $25,000. The project is
expected to return $8,000, $10,000, and $14,000 in years one, two, and three,
respectively. The project has a required rate of return of 15%. Use the internal rate of
return evaluation technique to determine whether or not this project should be
accepted. Explain your answer.

The Acorn Project Will Require an Initial Cash Outflow of $25,000