Kiley Electronics 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 (and even negative), in which case it will be rejected. $$\begin{array}{l}
\begin{array} { l }
\text { Year } \
\text { Cash flows }
\end{array}
\begin{array} { c c c c }
0 & 1 & 2 & 3 \
\hline - \$ 1,100 & \$ 450 & \$ 470 & \$ 490
\end{array}
\end{array}$$

Question

Kiley Electronics 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 (and even negative), in which case it will be rejected. $$\begin{array}{l}
\begin{array} { l } 
\text { Year } \
\text { Cash flows }
\end{array}
\begin{array} { c c c c } 
0 & 1 & 2 & 3 \
\hline - \$ 1,100 & \$ 450 & \$ 470 & \$ 490
\end{array}
\end{array}$$

Quizplus · Accepted Answer

$$\begin{array}{l}
\
\begin{array} { c c c c } 
\text { Year }&0 & 1 & 2 & 3 \
\text { Cash flows }&- \$ 1,100 & \$ 450 & \$ 470 & \$ 490
\end{array}
\end{array}$$ 
IRR = 13.31%

Kiley Electronics Is Considering a Project That Has the Following