Question: Consider the project described in the table below. What is the project's internal rate of return? Cost of Capital Rate 5% Time 0 1 2

Consider the project described in the table below. What is the project's internal rate of return?

Cost of Capital Rate

5%

Time

0

1

2

3

4

Cash Flows

($5,000)

$500

$1,000

$2,000

$3,000

Select one:

a.

8.70%

b.

8.44%

c.

8.61%

d.

8.79%

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