Pandora, Inc. is considering a five-year project that has an initial outlay or cost of $70,000. The cash inflows from its project for years 1, 2, 3, 4 and 5 are all the same at $14,000. The borrowing costs are 10%. What is the IRR? Should Pandora use the IRR method to evaluate this project? Explain.

Answer rating: 100% (QA)

Internal Rate of Return IRR The IRR for this project is the discount rate that makes the Net Present ... View the full answer