Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. $\begin{array}{c}
\begin{array}{lll}
\text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
0 \
\hline -\$1,100
\end{array}
\begin{array}{lll}
1 \
\hline \$450
\end{array}
\begin{array}{lll}
2 \
\hline \$470
\end{array}
\begin{array}{lll}
3 \
\hline \$490
\end{array}
\end{array}$

a. $9.70 \%$
b. $10.78 \%$
c. $11.98 \%$
d. $13.31 \%$
e. $14.64 \%$

Question

Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. $\begin{array}{c}
\begin{array}{lll}
 \text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
 0 \
\hline -\$1,100
\end{array}
\begin{array}{lll}
1 \
\hline \$450
\end{array}
\begin{array}{lll}
2 \
\hline \$470
\end{array}
\begin{array}{lll}
3 \
\hline \$490
\end{array}
\end{array}$

a. $9.70 \%$
b. $10.78 \%$
c. $11.98 \%$
d. $13.31 \%$
e. $14.64 \%$

Quizplus · Accepted Answer

The Answer of Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. $\begin{array}{c}
\begin{array}{lll}
 \text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
 0 \
\hline -\$1,100
\end{array}
\begin{array}{lll}
1 \
\hline \$450
\end{array}
\begin{array}{lll}
2 \
\hline \$470
\end{array}
\begin{array}{lll}
3 \
\hline \$490
\end{array}
\end{array}$

a. $9.70 \%$
b. $10.78 \%$
c. $11.98 \%$
d. $13.31 \%$
e. $14.64 \%$

Datta Computer Systems Is Considering a Project That Has the Following