Modern Refurbishing Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected.
Year0
1
2
3
4
Cash flows?$850
$300
$290
$280
$270
A. 13.13%
B. 14.44%
C. 15.89%
D. 17.48%
E. 19.22%
Answer: A
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