Modern Refurbishing 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 (and even negative),in which case it will be rejected. $$\begin{array} { l c c c c c }
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270
\end{array}$$
A) 13.13%
B) 14.44%
C) 15.89%
D) 17.48%
E) 19.22%

Question

Modern Refurbishing 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 (and even negative),in which case it will be rejected. $$\begin{array} { l c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270
\end{array}$$
A) 13.13%
B) 14.44%
C) 15.89%
D) 17.48%
E) 19.22%

Quizplus · Accepted Answer

$$\begin{array} { l c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270
\end{array}$$ IRR = 13.13%

Modern Refurbishing Inc Year 01234 Cash Elows −$850$300$290$200$270\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270\end{array} Year Cash Elows ​0−$850​1$300​2$290​3$200​4$270​

Modern Refurbishing Inc $\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270\end{array}$