Falcon Freight is evaluating a proposed capital budgeting project (project Sigma) that will require an initial Investment of $900,000 Falcon Freight has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because returns in percentage form are easier to understand and compare to required returns. Falcon Freight's WACC is 9%, and project Sigma has the same risk as the firm's average project

The project is expected to generate the following net cash flows: Which of the following is the correct calculation of project Sigma's IRR? 27.274 30.000 24,544 28.635