Question: Apricot, Inc is considering developing a new app for its A-phone Z. The app would cost $310,000 to develop and is expected to produce cash

Apricot, Inc is considering developing a new app for its A-phone Z. The app would cost $310,000 to develop and is expected to produce cash flows of $80,000 per year for the first three years, then $60,000, $50,000, and $40,000 each of the last three years respectively. If their required return is 18%, what is the IRR of the new app?

A. 7.70%
B. 7.94%

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