Question: Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR
Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year | 0 | 1 | 2 | 3 |
Cash flows | -$1,250 | $450 | $470 | $490 |
| a. | 6.18% | |
| b. | 5.99% | |
| c. | 6.67% | |
| d. | 5.01% | |
| e. | 5.50% |
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