Pet World 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.
$\begin{array}{cccccc}
\text { Year } &0 & 1 & 2 & 3 & 4 & 5 \
\hline-\text { Cash flows } &\$ 9.500 & \$ 2.000 & \$ 2.025 & \$ 2.050 & \$ 2.075 & \$ 2.100
\end{array}$

Question

Pet World 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. 
$\begin{array}{cccccc}
\text { Year } &0 & 1 & 2 & 3 & 4 & 5 \
\hline-\text { Cash flows } &\$ 9.500 & \$ 2.000 & \$ 2.025 & \$ 2.050 & \$ 2.075 & \$ 2.100
\end{array}$

Quizplus · Accepted Answer

$\begin{array} { l c c c c c c } 
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
 \text { Cash flows } & - \$ 9,500 & \$ 2,000 & \$ 2,025 & \$ 2,050 & \$ 2,075 & \$ 2,100
\end{array}$ 
IRR = 2.57%

Pet World Is Considering a Project That Has the Following