Project Hush will cost the Lullaby Company $26,000. The project is expected to generate net cash flows of $7,244 a year for six years. What is the project's IRR? Round your answer to the
Nearest tenth of a percent.
A)3.6%
B)17.0%
C)27.9%
D)6.0%

Question

Quizplus · Accepted Answer

The IRR is the discount rate that makes the net present value (NPV) of the cash flows equal to zero. Using the IRR formula or a financial calculator, the IRR for the given cash flows is approximately 17.0%.

Project Hush Will Cost the Lullaby Company $26,000