37

e. 15.86 USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 36-37 ABC Industries is considering a project that has the following cash flows: Year Cash Flow 0 -51,000 1 10,000 2 25,000 15,000 4 25,000 5 36,000 The project has a payback period of 3.5 years. The firm's cost of capital is 17%. %. 37. The IRR of the project is a. 27.17 b. 25.12 c. 27.66 d. 26.66 e. 24.33