Pet World 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. $$\begin{array} { c c c c c c c }
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flowr } & - \$ 9,500 & \$2,000 & \$ 2,025 & \$2,050 & \$2,075 & \$2,100
\end{array}$$
A) 2.08%
B) 2.31%
C) 2.57%
D) 2.82%
E) 3.10%

Question

Pet World 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. $$\begin{array} { c c c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash flowr } & - \$ 9,500 & \$2,000 & \$ 2,025 & \$2,050 & \$2,075 & \$2,100
\end{array}$$
A) 2.08%
B) 2.31%
C) 2.57%
D) 2.82%
E) 3.10%

Quizplus · Accepted Answer

$$\begin{array} { c c c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
 \text { Cash flowr } & - \$ 9,500 & \$2,000 & \$ 2,025 & \$2,050 & \$2,075 & \$2,100
\end{array}$$ IRR = 2.57%

Pet World Is Considering a Project That Has the Following