Simpson,Inc

question 77

Multiple Choice

Simpson,Inc.is considering a five-year project that has an initial outlay or cost of $80,000.The respective future cash inflows from its project for years 1,2,3,4 and 5 are: $15,000,$25,000,$35,000,$45,000,and $55,000.Simpson uses the internal rate of return method to evaluate projects.What is the project's IRR?

• A)The IRR is less than 22.50%.
• B)The IRR is about 24.16%.
• C)The IRR is about 26.16%.
• D)The IRR is over 26.50%.