Question: Panhandle Corp. is considering three projects. Each project has an initial outlay of $424,000. Project A is expected to earn $38,000 in year one, $98,000

Panhandle Corp. is considering three projects. Each project has an initial outlay of $424,000.

Project A is expected to earn $38,000 in year one, $98,000 in year two, $65,000 in year three, and $263,000 in year four.

Project B is expected to earn $125,000 per year for four years.

Project C is expected to earn $548,000 in year four.

The WACC is 6%.

What is the difference between the IRR of A and of C?

about 0.32%
about 0.007
about 0.51%
the IRR's are the basically the same

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