Tucker Corp. 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 negative, in which case it will be rejected.
A) 15.82%
B) 16.65%
C) 17.48%
D) 18.36%

Question

Tucker Corp. 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 negative, in which case it will be rejected. 
A) 15.82% 
B) 16.65% 
C) 17.48% 
D) 18.36%

Quizplus · Accepted Answer

We can calculate the IRR using financial calculator or Excel. Using Excel's IRR function with the provided cash flows, we get an IRR of approximately 16.65%. This is a positive return, so the project should be accepted.