Product $2$ has the same IRR as Product $1$ because they both use the same discount rate.

Question $20$

A company uses a weighted average cost of capital $($WACC$)$ of $7\%.$ It is considering

investing in a new project. Its financial model shows the following metrics:

Cumulative Net Cash Flows of $$290,000$

NPV of $$200,000$

Payback period of $2\mathrm{.}2$ years

Of the following, which is the most plausible estimate of the project's IRR based on the

above?

$49\%$

$-7\%$

$0\%$

$7\%$