Modern Refurbishing Inc $$\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270\end{array}$$

question 65

Multiple Choice

Modern Refurbishing Inc.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 WACC (and even negative) ,in which case it will be rejected. $$\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\text { Cash Elows } & - \$850 & \$300 & \$290 & \$200 & \$270\end{array}$$

• A) 13.13%
• B) 14.44%
• C) 15.89%
• D) 17.48%
• E) 19.22%

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Definitions:

Dodo Bird Verdict

A metaphor stemming from Alice in Wonderland and used in psychology to suggest that different forms of therapy are equally effective.

Psychotherapy

A treatment method for mental health conditions involving talking with a mental health professional to explore thoughts, feelings, and behaviors to achieve desired change.

Hostile Attitude

Exhibiting aggression or animosity towards others or towards specific ideas.

DSM-IV-TR

The fourth edition, text revision, of the Diagnostic and Statistical Manual of Mental Disorders, a guide used by clinicians to diagnose mental disorders.