Question: The following cash flow was generated for a particular project investment. The IRR of the project is very close to: End of Year End of

The following cash flow was generated for a particular project investment. The IRR of the project is very close to:

End of Year

End of Year Cash Flow

0

-$500

1

$140

2

$132

3

$124

4

$116

5

$108

  1. 12% annually compounding interest rate
  2. 10% annually compounding interest rate
  3. 8% annually compounding interest rate
  4. 6% annually compounding interest rate
  5. None of the above. The correct IRR is: ____________________________.

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