Calculations of the IRR Based on a Value of R

Multiple Choice

Calculations of the IRR based on a value of r = 5% give a NPV value of £234,000. Trying the effect of increasing and decreasing r gives - £876,000 when r = 10% and £456,000 when r = 2%. Which of the following values of r is most likely to be correct?

A) 9.7%
B) 6.2%
C) 1.7%
D) 2.5%