Warr Company is considering a project that has the following cash flow

jagguarpaw January 16, 2017 0 Comments

Question: Warr Company is considering a project that has the…

Warr Company 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 WACC or negative, in both cases it will be rejected.

YEAR	0	1	2	3	4
CASH FLOWS	-$1050	$400	$400	$400	$400

	A	14.05 percent
	B	15.61 percent
	C	17.34 percent
	D	19.27 percent
	E	21.20 percent