1) A company is considering a project for investment which will cost $70,000. The company has a cost of capital of 8%. The project has the following discounted cash flows:

Year cash flows

1 23,000

2 30,000

3 21,000

4 14,000

Use the following discount rates to calculate IRR of the project?

Discount factor @ 8% Discount factor @ 15%

Year 1 0.926 0.870

Year 2 0.857 0.756

Year 3 0.794 0.658

Year 4 0.735 0.572

What is its IRR?