Question: Use the table for the question(s) below. Consider the following two projects with cash flows in $: Project Year 0 Cash Flow Year 1 Cash

Use the table for the question(s) below. Consider the following two projects with cash flows in $:

Project Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Discount Rate
A -100 40 50 60 N/A .15
B -73 30 30 30 30 .15

The internal rate of return (IRR) for project A is closest to:

21.6%.

23.3%.

7.7%.

42.9%.

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