You have been asked to compute the IRR for a project with the following cash flows:

Year	CF
0	-400
1	300
2	1250
3	-1000
4	1500
5	-1800

Based on the cash flows, which of the following are you most likely to find on the IRR? Would you take this investment if your cost of capital were 10%, what is the NPV?

a.

The IRR will be a very large negative number; No, NPV=-54.63

b.

The IRR cannot be computed; Can't know, NPV can't be calculated

c.

The IRR will be a very large positive number

d.

IRR=8%, Yes, NPV=234.33

e.

There will be multiple IRRs; Yes, NPV=61.33