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A firm is considering the following project which has the following cash flows: Year 0--$350,000;Year 1-$120,000;Year 2 --$80,000;Year 3-$45,000 Year 4-$45,000;Year 5-$200,000. All cash flows
A firm is considering the following project which has the following cash flows:
Year 0--$350,000;Year 1-$120,000;Year 2 --$80,000;Year 3-$45,000
Year 4-$45,000;Year 5-$200,000.
All cash flows are positive except for the Year 0 cash flow which is negative.Assume all cash flows are received at the end of each year.If the required return is 11%, what is the IRR for this project?
a. less than 5%
b. between 5-10
c. between 10-15
d. between 20-25
e. greater than 25
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