Pet World 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
5
Cash flows?$9,500
$2,000
$2,025
$2,050
$2,075
$2,100

A. 2.08%
B. 2.31%
C. 2.57%
D. 2.82%
E. 3.10%


Answer: C

Business

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