Hart Corp. 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 cost of capital or negative, in both cases it will be rejected.
$\begin{array}{l}
\begin{array} { l }
\text { Year } \
\text { Cash flows }
\end{array}
\begin{array} { c c c c }
0 & 1 & 2 & 3 \
\hline - \$ 1,000 & \$ 425 & \$ 425 & \$ 425
\end{array}
\end{array}$

Question

Hart Corp. 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 cost of capital or negative, in both cases it will be rejected. 
$\begin{array}{l}
\begin{array} { l } 
\text { Year } \
\text { Cash flows }
\end{array}
\begin{array} { c c c c } 
0 & 1 & 2 & 3 \
\hline - \$ 1,000 & \$ 425 & \$ 425 & \$ 425
\end{array}
\end{array}$

Quizplus · Accepted Answer

$\begin{array} { l c c c c } 
\text { Year } & 0 & 1 & 2 & 3 \
\text { Cash flows } & - \$ 1,000 & \$ 425 & \$ 425 & \$ 425
\end{array}$ 
IRR = 13.21%

Hart Corp Is Considering a Project That Has the Following Cash