The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.
A) 13%
B) 16%
C) 21%
D) 24%

Question

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below:  The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.
A) 13% 
B) 16% 
C) 21% 
D) 24%

Quizplus · Accepted Answer

C) CF₀ = -400,000 CF₁ = 157,452.975 CF₂ = 157,452.975 CF₃ = 157,452.975 CF₄ = 157,452.975 Compute IRR = 21%.

The Sisyphean Company Is Planning on Investing in a New