What Is the IRR of the Following Set of Cash

question 95

Multiple Choice

What is the IRR of the following set of cash flows? $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 61,300 \\\hline 1 & 18,900 \\\hline 2 & 64,500 \\\hline 3 & 7,600 \\\hline\end{array}$$

• A)12.93 percent
• B)14.90 percent
• C)23.86 percent
• D)16.33 percent
• E)17.78 percent

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Definitions:

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.

Liabilities

Financial obligations or debts that a company owes to external parties.

Net Income

The net income of a company following the deduction of all expenses, taxes, and costs from its total revenue.

Assets

Resources owned by a business that have economic value and can be used to meet debts, commitments, or facilitate operations.