A project has the following NPVs at the indicated costs of capital: +$100 at 8%; +$25 at 9%; -$50 at 10%; -$100 at 11%. Which of the following is TRUE regarding this project's IRR? O A. The IRR is below 9%. O B. The IRR is about 11%. O C. The IRR is between 10% and 11%. O D. The IRR is closer to 9% than to 10%.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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A project has the following NPVs at the indicated costs of capital: +$100 at 8%;
+$25 at 9%; -$50 at 10%; -$100 at 11%. Which of the following is TRUE
regarding this project's IRR?
OA. The IRR is below 9%.
B. The IRR is about 11%.
C. The IRR is between 10% and 11%.
D. The IRR is closer to 9% than to 10%.
Transcribed Image Text:A project has the following NPVs at the indicated costs of capital: +$100 at 8%; +$25 at 9%; -$50 at 10%; -$100 at 11%. Which of the following is TRUE regarding this project's IRR? OA. The IRR is below 9%. B. The IRR is about 11%. C. The IRR is between 10% and 11%. D. The IRR is closer to 9% than to 10%.
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