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Cost of capital relevant to an irr calculation

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The capital budgeting director of Sparrow Corporation is evaluating a project which costs $200,000, is expected to last for 10 years and produce net aftertax cash flows of $44,503 per year. If the firm's cost of capital is 14 percent, what is the project's IRR? (Hint: Is the firm's cost of capital relevant to an IRR calculation?)

  • 8%
  • 14%
  • 18%
  • 5%
  • 12%

Reference no: EM131993613

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