As the Capital Budgeting Director for Chapel Hill Coffins Company

question 71

Multiple Choice

As the capital budgeting director for Chapel Hill Coffins Company, you are evaluating construction of a new plant. The plant has a net cost of $5 million in Year 0 (today) , and it will provide net cash inflows of $1 million at the end of Year 1, $1.5 million at the end of Year 2, and $2 million at the end of Years 3 through 5. Within what range is the plant's IRR?

• A) 14 - 15%
• B) 15 - 16%
• C) 16 - 17%
• D) 17 - 18%
• E) 18 - 19%

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Product's Quality

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