Maxwell Feed & Seed 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 0 1 2 3 4 5 54,700 51,475 51.500 $1,525 51.550 51.575 Year Cash flows 18.40 OD: 10.10% O 124 0.6227 O 1161 Texas Wildcatters Inc. (TWD) is in the business of finding and developing oil properties, then selling the waccessful ones to major oil companies. It is now considering a new potential field, and its crologists have developed the following data shown in thousands of dollars. 1-A $270 famibility study would be conducted atto. The results of this study would determine if the company should commence drilling operations or make no further investment and abandon the project. There is an 80% probability that the feasibility study would indicate that an exploratory well should be drilled. There is a 20% probability that no further work would be done * If the feasibility study indicates good potential, the firm would be required to make an after-tax investment of S980 att to drill an exploratory well. The best estimate is that there is a 60% probability that the exploratory well would indicate good potential and thus that further work would be done, and a 40% probability that the outlook would be poor and the project would be abandoned to the exploratory well tests positive, the firm would go ahead and make an after-tax investment of $6.280 to obtain an accurate estimate of the amount of all in the field att If the full drilling program is carried out, there is a go probability of finding a lot of oil and receiving a $17.340 after-tax cash inflow at t - 3. and a 50% probability of finding less oil and then receiving only $6,00 after-tax cushindow Since the project is quite rinky, 1500% cost of capital is used Calculate the project's coeficient of variation 0507 06.01 571 d. 121 03 0