What is the IRR of the following set of cash flows? Cash Flow Year -$12,087 4,700 7,000 6,300 3 Multiple Choice 20.6% 21.25% 2276% Shelton Co. purchased a parcel of land six years ago for $876,500. At that time, the firm invested $148,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $55,500 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $928,000. Whet value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice $876500 50 $1,076,000 $1024.500 5928 000 21 of 25 The difference between a company's future ceash flows if it accepts a project and the company's future cash flows if it does nat accept the project is referred to as the project's Multiple Cholce incremental cash flows Intemal cash flows external cash flows erosion effects financing cash fiows 22 of 25