Maxwell Feed & Seed 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 less than the WACC (and even negative),in which case it will be rejected.
A)2.08%
B)2.31%
C)2.57%
D)2.82%
E)3.10%

Question

Maxwell Feed & Seed 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 less than the WACC (and even negative),in which case it will be rejected. 
A)2.08% 
B)2.31% 
C)2.57% 
D)2.82% 
E)3.10%

Quizplus · Accepted Answer

Using a financial calculator, the IRR of the project is calculated to be 2.57%, which is greater than the company's Weighted Average Cost of Capital (WACC). Therefore, the project should be accepted. Option A, B, D, and E have incorrect IRR values.

Maxwell Feed & Seed Is Considering a Project That Has