Question: Panhandle Corp. is considering three projects. Each project has an initial outlay of $50,000. Project A is expected to earn $16,000 per year for four

Panhandle Corp. is considering three projects. Each project has an initial outlay of $50,000.

Project A is expected to earn $16,000 per year for four years.

Project B is expected to earn $70,000 in year four.

Project C is expected to earn $4,000 in year one, $8,000 in year two, $18,000 in year three, $36,000 in year four.

The WACC is 7%.

What are the IRR's of A and C?

A = 8.78%; C = 8%
A = 10.66%; C = 8.78%
A = 10.66%; C = 8.87%
A = 8%; C = 8.78%

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