Hart CorpIs Considering a Project That Has the Following Cash Flow

question 31

Multiple Choice

Hart Corp.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 or negative, in both cases it will be rejected.

• A) 12.55%
• B) 13.21%
• C) 13.87%
• D) 14.56%
• E) 15.29%

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Definitions:

Raise G

This term is ambiguous without context, but it could refer to increasing government spending or investment in certain contexts.

Social Security Tax

A tax paid equally by employee and employer, based on employee’s wages. Most proceeds are used to pay Social Security retirement and Medicare benefits.

Personal Income Tax

A tax levied on individuals or entities based on their income or profits.

Corporate Profits

The surplus income of corporations after all expenses have been met, indicative of corporate health.