Shoring Company is considering a project with an internal rate of return of 14.5 percent.Shoring requires a minimum rate of return of 12 percent.The net present value of the project is

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The fact that the project has an internal rate of return (IRR) of 14.5% is a strong indication that the net present value (NPV) of the project is positive. If the NPV of the project were negative, the IRR would be less than the required rate of return of 12%. Therefore, we can conclude that the NPV of the project is positive, which means that the project is a profitable investment for Shoring Company.

Shoring Company Is Considering a Project with an Internal Rate