Kiley Electronics 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 WACC (and even negative),in which case it will be rejected.
A)9.70%
B)10.78%
C)11.98%
D)13.31%
E)14.64%

Question

Kiley Electronics 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 WACC (and even negative),in which case it will be rejected. 
A)9.70% 
B)10.78% 
C)11.98% 
D)13.31% 
E)14.64%

Quizplus · Accepted Answer

The project's cash flows generate an IRR of 13.31%, which is greater than the company's WACC. Therefore, the project should be accepted.

Kiley Electronics Is Considering a Project That Has the Following