P10–14 Internal rate of return For each of the projects shown in the following table, calculate the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

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Project A Project B Project C Project D Initial investment (CFO) $90,000 $490,000 $20,000 $240,000 Year (t) Cash inflows (CF) 1 $20,000 $150,000 $7,500 $120,000 2 25,000 150,000 7,500 100,000 3 30,000 150,000 7,500 80,000 4 35,000 150,000 7,500 60,000 S 40,000 7,500