Spence Company Is Considering a Project That Has the Following

question 86

Multiple Choice

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. $$\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash flows } & - \$ 1,050 & \$ 400 & \$ 400 & \$ 400 & \$ 400\end{array}$$

• A) 14.05%
• B) 15.61%
• C) 17.34%
• D) 19.27%
• E) 21.20%

---

Definitions:

Low Self-esteem

A condition where an individual holds a negative and often persistent belief about themselves, impacting their overall well-being.

Sugary Junk Foods

Highly processed foods that are high in sugar and low in nutritional value, often leading to health issues.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, which serve as a major energy source in the diet of animals, including humans.

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, and sleep, among other physiological processes, often associated with feelings of well-being and happiness.