Find What Project Y IRR is

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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

Year 1                                 $12,000                      $10,000

Year 2                                  $8,000                        $10,000

Year 3                                   $6,000                             0

Year 4                                     $2,000                            0

Year 5                                          $2,000                      0

Question a: Project Y's IRR is:

1. 12.51%
2. less than zero.
3. 22.51%.
4. less than 17%.

Reference no: EM132643571

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