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Question
Hart Corp. 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 or negative, in both cases it will be rejected.
Year 0 1 2 3
Cash flows -$1,000 $425 $425 $425
a. 12.55%
b. 13.21%
c. 13.87%
d. 14.56%
e. 15.29%
Answer
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