QUESTION $8$

A firm with a $12$ percent cost of capital is considering a project for this year$$s capital budget. The project$$s expected after$-$tax cash flows are as follows:

Year:

$0$

$1$

$2$

$3$

$4$

Cash flow:

$-$$$15,000$

$$7,100$

$$6,800$

$$6,500$

$$5,600$

Calculate the project$$s internal rate of return $($IRR$).$

a$.$

$32\mathrm{.}97\%$

b$.$

$35\mathrm{.}79\%$

c$.$

$14\mathrm{.}74\%$

d$.$

$27\mathrm{.}53\%$

e$.$

$73\mathrm{.}33\%$