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Question
Spence Company 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
Cash flows -$1,050 $400 $400 $400 $400
a. 14.05%
b. 15.61%
c. 17.34%
d. 19.27%
e. 21.20%
Answer
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