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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?

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35.52%

30.25%

25.60%

37.81%

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