Question

A company has a project with the following cash flows (in Millions). The WACC for the...

A company has a project with the following cash flows (in Millions). The WACC for the company is 7.5%.

year cash flow

1 $(20,000.00)

0 $2,000.00

2 $ 5,000.00

3 $12,000.00

4 $12,000.00

5 $9,000.00

What is the IRR of this project?

A.

10.13%
B.

17.55%
C.

22.66%
D.

This project does not have normal cash flows so IRR cannot be calculated
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Answer #1

Ans C. 22.66%

the IRR of this project is 22.66%

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