Consider a project with the following stream of cash flows. What's the IRR of the project? If a firm's cost of capital is 15%,should the firm accept the project?

Question

Consider a project with the following stream of cash flows.  What's the IRR of the project? If a firm's cost of capital is 15%,should the firm accept the project?

Quizplus · Accepted Answer

A simple way to solve this problem is to take all the IRRs given in the answer choices and to see whether the IRRs will make the NPV of the project equal to zero.
The NPV of the cash flow at discount rate of 15% is has a positive value of $0.01m,should accept the project.

Consider a Project with the Following Stream of Cash Flows