Data Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative), in which case it will be rejected.
A) 9.70%
B) 10.78%
C) 11.98%
D) 13.31%
E) 14.64%

Question

Quizplus · Accepted Answer

Using Excel or a financial calculator, the IRR of the cash flows is determined to be 13.31%. This is greater than the company's WACC of 10%, making it a viable project and the best choice.

Data Computer Systems Is Considering a Project That Has the Following