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A firm with a 10% WACC is evaluating two projects for this years capital budget. After-tax cash flows are as follows: Time 0 Year 1
A firm with a 10% WACC is evaluating two projects for this years capital budget. After-tax cash flows are as follows:
Time 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
Project A | - 6,000 | 2,000 | 3,000 | 2,500 | 4,000 | 4,500 |
Project B | -18,000 | 5,600 | 5,600 | 7,000 | 7,200 | 8,000 |
Question #16: What is the IRR for Project A?
Group of answer choices
35.52%
30.25%
25.60%
37.81%
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