Thorley Inc ?
A) 14

question 64

Multiple Choice

Thorley Inc.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 or negative,in both cases it will be rejected. $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flows } & - \$ 1,100 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325\end{array}$$
?

• A) 14.59%
• B) 15.18%
• C) 11.24%
• D) 16.20%
• E) 13.43%

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Definitions:

Supplies Cost

The expense associated with acquiring supplies necessary for the operation of a business, such as office supplies or manufacturing inputs.

Variable Manufacturing Overhead

Indirect manufacturing costs that change in total in direct proportion to changes in production volume, such as utilities or materials.

Commercial Safes

Commercial safes are secure storage solutions designed for business use to protect valuable items, documents, and cash from theft or fire.

Standard Machine-hours

The predetermined amount of time that machines are expected to operate to meet production targets within a specific period.