Nichols Inc.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 or negative,in both cases it will be rejected. $\begin{array}{lcccccc}
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flows } & -\$ 1,250 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325
\end{array}$
A) 9.43%
B) 9.91%
C) 10.40%
D) 10.92%
E) 11.47%

Question

Nichols Inc.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 or negative,in both cases it will be rejected. $\begin{array}{lcccccc}
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
 \text { Cash flows } & -\$ 1,250 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325
\end{array}$
A) 9.43%
B) 9.91%
C) 10.40%
D) 10.92%
E) 11.47%

Quizplus · Accepted Answer

$\begin{array}{lcccccc}
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
 \text { Cash flows } & -\$ 1,250 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325
\end{array}$ IRR = 9.43%

Nichols Inc A) 943% B) 9

Nichols Inc A) 943%
B) 9