A 50- Year Project Has a Cost of $500,000 and Has

question 391

Multiple Choice

A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the
IRR of the project.

• A) 19.19%
• B) 20.20%
• C) 21.21%
• D) 22.22%
• E) 23.23%