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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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