Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases, it will be rejected.
 
Year Cash flows
0 -1,415
1 400
2 400
3 400
4 400
 
 
a. 5.61%
b. 5.00%
c. 3.98%
d. 5.10%

 

13 Jan

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