Internal Rate of Return: Signet Pipeline Co

question 18

Multiple Choice

Internal rate of return: Signet Pipeline Co. is looking to install new equipment that will cost $2,750,000. The cash flows expected from the project are $612,335, $891,005, $1,132,000, and $1,412,500 for the next four years. What is Signet's internal rate of return? (Round to the nearest percent.)

• A) 11%
• B) 13%
• C) 15%
• D) 17%

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