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Pet World is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be
Pet World is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | $8,500 | $2,000 | $2,025 | $2,050 | $2,075 | $2,100 |
| a. | 6.53% | |
| b. | 6.47% | |
| c. | 5.08% | |
| d. | 5.31% |
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