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 | $1,100 | $450 | $470 | $490
|
| a. | 11.98% | |
| b. | 9.70% | |
| c. | 14.64% | |
| d. | 13.31% | |
| e. | 10.78% |
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