Question: You are choosing between four projects. Project A has the following cash flows: $1,000 in Year 0, $100 in Year 1, $200 in Year 2,

You are choosing between four projects.

Project A has the following cash flows: $1,000 in Year 0, $100 in Year 1, $200 in Year 2, $400 in Year 3, $400 in Year 4.

Project B has the following cash flows: $1,000 in Year 0, $300 in Year 1, $200 in Year 2, $0 in Year 3, $600 in Year 4.

Project C has the following cash flows: $1,000 in Year 0, $400 in Year 1, $100 in Year 2, $100 in Year 3, $500 in Year 4.

Project D has the following cash flows: $1,000 in Year 0, $0 in Year 1, $0 in Year 2, $600 in Year 3, $500 in Year 4.

Which of these projects has the lowest internal rate of return?

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