Pet World Is Considering a Project That Has the Following

question 105

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 WACC (and even negative) ,in which case it will be rejected. $$\begin{array} { c c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Cash flowr } & - \$ 9,500 & \$2,000 & \$ 2,025 & \$2,050 & \$2,075 & \$2,100\end{array}$$

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

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Definitions:

Short-term Memory

The power to retain minimal information in an active, easily accessible form for a short timeframe.

List Memory

The ability to remember sequences or lists of items, a fundamental aspect of human memory function.

Short-term Memory

A temporary storage system in the brain for holding a small amount of information readily available for a short period of time.

Iconic Memory

A type of visual sensory memory that retains information for a very brief period, often described as the afterimage left by a visual stimulus.