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A project requires certain investment X today. It's profitability index is 1.20, The project is evaluated based en the firm's 15% cost of capital, Year

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A project requires certain investment X today. It's profitability index is 1.20, The project is evaluated based en the firm's 15% cost of capital, Year 1 this project will generate cash inflow of 550,000 . This cash flow will increase by S25,000 each year for years 2 through 5. In other words, starting year 1, the cash flow will be $50,000 and this will increase by additional $25,000 for years 2 through 5 . What is the project's Intemal rate of return, the IR R=7 15,47% 21.76% 16.29% 20.01%

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