Tucker Corp.is considering a project that has the following cash flow data.What is the project's IRR? $\begin{array}{l}
\begin{array}{l}
\text { Year: } \
\text { Cash flows: }
\end{array}
\begin{array}{cccc}
0 & 1 & 2 & 3 \
\hline-\$ 1,000 & \$ 450 & \$ 450 & \$ 450
\end{array}
\end{array}$
A)15.82%
B)16.65%
C)17.48%
D)18.36%

Question

Quizplus · Accepted Answer

To find the IRR, we need to find the discount rate at which the present value of future cash flows equals the initial investment of $1,000.
Using trial and error, we can find that at a discount rate of 16.65%, the present value of cash flows equals $1,000.
Thus, the project's IRR is 16.65%.
The best choice is B because it is the correct IRR for the project.

Tucker Corp A)1582% B)16

Tucker Corp A)1582%
B)16