Thorley Inc A $9.43 \%$ B $9.91 \%$ C $10.40 \%$ D $10.92 \%$

question 63

Short Answer

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. $\begin{array}{c}\begin{array}{lll} \text {Year}\\\text {Cash flows}\end{array}\begin{array}{lll} 0 \\\hline -\$1,250\end{array}\begin{array}{lll}1 \\\hline \$325\end{array}\begin{array}{lll}2 \\\hline \$325\end{array}\begin{array}{lll}3 \\\hline \$325\end{array}\begin{array}{lll}4 \\\hline \$325\end{array}\begin{array}{lll}5 \\\hline \$325\end{array}\end{array}$

a. $9.43 \%$
b. $9.91 \%$
c. $10.40 \%$
d. $10.92 \%$
e. $11.47 \%$

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Definitions:

Distinguish Faces

The cognitive ability to recognize and differentiate between individual faces, often considered a marker of social cognition.

Perceptual Organization

The process by which the brain pieces together sensory information to create a coherent picture of the environment.

Closure

The sense of resolution or conclusion at the end of an emotional or traumatic experience or relationship.

Linear Perspective

A fundamental principle in art and design that creates the illusion of depth and distance on a flat surface.