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Question
Nichols Inc. 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 4 5
Cash flows -$1,250 $325 $325 $325 $325 $325
a. 9.43%
b. 9.91%
c. 10.40%
d. 10.92%
e. 11.47%
Answer
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