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A firm with an initial endowment of $500,000 has the following independent investment opportunities, Project Period 1 Outlay Period 2 Return A 105,000 122,000 B

A firm with an initial endowment of $500,000 has the following independent investment opportunities,

Project Period 1 Outlay Period 2 Return
A 105,000 122,000
B 110,000 125,000
C 108,000 120,000
D 100,000 115,000

Given the information above and that the firm has a required rate of return of 10.00%. Which project has the highest IRR?

a.

Project D.

b.

Project B.

c.

Project A.

d.

Project C.

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