Kiley Electronics Is Considering a Project That Has the Following $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,100 & \$ 450 & \$ 470 & \$ 490\end{array}$$

question 57

Multiple Choice

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 cost of capital (and even negative) , in which case it will be rejected. $$\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,100 & \$ 450 & \$ 470 & \$ 490\end{array}$$

• A) 9.70%
• B) 10.78%
• C) 11.98%
• D) 13.31%
• E) 14.64%

---

Definitions:

Bell-Shaped

A bell-shaped curve is a graph of a distribution that resembles the shape of a bell, typically representing a normal distribution in which the bulk of the values lie towards the center and taper off symmetrically towards the extremes.

Standard Deviation

A measure of the dispersion or variability within a set of numerical data, indicating how spread out the values are.

Mean

The arithmetic average of a set of numbers, found by dividing the sum of all the numbers by the count of the numbers.

Population Variance

A measure of the dispersion of a set of data points in a population, calculated as the average of the squared deviations from the mean.