Modern Refurbishing Inc. 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.
$\begin{array} { l c c c c c }
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash flows } & - \$ 850 & 300 & 290 & 280 & 270
\end{array}$

Question

Modern Refurbishing Inc. 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. 
$\begin{array} { l c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash flows } & - \$ 850 & 300 & 290 & 280 & 270
\end{array}$

Quizplus · Accepted Answer

$\begin{array} { l c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 \
\text { Cash flows } & - \$ 850 & 300 & 290 & 280 & 270
\end{array}$ 
IRR = 13.13%

Modern Refurbishing Inc Year 01234 Cash flows −$850300290280270\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash flows } & - \$ 850 & 300 & 290 & 280 & 270\end{array} Year Cash flows ​0−$850​1300​2290​3280​4270​

Modern Refurbishing Inc $\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash flows } & - \$ 850 & 300 & 290 & 280 & 270\end{array}$