Maxwell Feed & Seed 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 (and even negative), in which case it will be rejected.
A) 2.08%
B) 2.31%
C) 2.57%
D) 2.82%
E) 3.10%

Question

Quizplus · Accepted Answer

The IRR (Internal Rate of Return) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. To find the IRR, you would typically use financial software or a financial calculator to input the cash flows and solve for the rate. Based on the given options, the IRR is closest to 2.57%.

Maxwell Feed & Seed Is Considering a Project That Has