[answered] Maxwell Feed &amp; Seed is considering a project that h

Maxwell Feed & Seed 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.
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 Year 0 ? ? 1 ? ? 2 ? ? 3 ? ? 4 ? ? 5 ? ? Cash flows ?\$9,500 \$2,000 \$2,025 \$2,050 \$2,075 \$2,100
 a. 2.82% b. 3.10% c. 2.08% d. 2.57% e. 2.31%

Column1 Column2 Column3 Column4 Column5 Lets try cost of capital of 17% and 20%

IRR gives a NPV of zero

Year

Cash flow (\$) PVIF (17%)

0

1

-1,050

1

400 0.85470085

2

400 0.73051355

3

400 0.62437056...

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This question was answered on: Sep 18, 2020

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