Spence Company Is Considering a Project That Has the Following

Multiple Choice

Spence Company is considering a project that has the following cash flow data.What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. $$\begin{array} { l c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 \\\hline \text { Cash flows } & - \$ 1,050 & \$ 400 & \$ 400 & \$ 400 & \$ 400\end{array}$$

A) 14.05%
B) 15.61%
C) 17.34%
D) 19.27%
E) 21.20%