Pet World Is Considering a Project That Has the Following

question 43

Multiple Choice

Pet World 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. $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flows } & - \$ 9,500 & \$ 2,000 & \$ 2,025 & \$ 2,050 & \$ 2,075 & \$ 2,100\end{array}$$

• A) 2.08%
• B) 2.31%
• C) 2.57%
• D) 2.82%
• E) 3.10%

---

Definitions:

Attention-Deficit/Hyperactivity Disorder

A condition characterized by persistent difficulties with attention and/or impulsivity that interfere with performance and behavior in school and daily life.

Intellectual Disability

A developmental condition characterized by significant limitations in both intellectual functioning and adaptive behavior, originating before the age of 18.

Dyslexia

A learning disorder characterized by difficulties with accurate and/or fluent word recognition and by poor spelling abilities.

Socioeconomic Status

An indicator of the social and economic level of an individual or family when compared with others, taking into account factors like earnings, education, and type of work.