Question: Question 2 XYZ is evaluating a project that would require an initial investment of $74,000.00 today. The project is expected to produce annual cash flows

Question 2

XYZ is evaluating a project that would require an initial investment of $74,000.00 today. The project is expected to produce annual cash flows of $8,600.00 each year forever with the first annual cash flow expected in 1

year. The NPV of the project is $7,400.00. What is the IRR of the project?

O 10.57% (plus or minus 0.02 percentage points)

O 10.00% (plus or minus 0.02 percentage points)

O 11.62% (plus or minus 0.02 percentage points)

O 12.91% (plus or minus 0.02 percentage points)

O None of the above is within 0.02 percentage points of the correct answer

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