Use the Following Information to Answer the Following Question

question 52

Multiple Choice

Use the following information to answer the following question.
Below are the expected after-tax cash flows for Projects Y and Z.Both projects have an initial cash outlay of $20,000 and a required rate of return of 17%.
Project Y Project Z

-You are considering investing in a project with the following year-end after-tax cash flows: Year 1: $5000
Year 2: $3200
Year 3: $7800
If the initial outlay for the project is $12 113, calculate the project's IRR.

• A)14%
• B)10%
• C)32%
• D)24%

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Definitions:

Base Value

A reference point or initial value used in financial calculations, indexes, or for measuring changes in economic indicators.

Missing Value

In data analysis, a data point that is absent or not recorded, which can affect the outcome of statistical models.

Decimal Places

The quantity of numerals located to the right side of the decimal point in a numeric value.

Missing Value

A data term referring to a value that is lost, unrecorded, nonexistent, or omitted in a dataset.