Datta Computer Systems Is Considering a Project That Has the Following

Short Answer

Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. $\begin{array}{c}\begin{array}{lll} \text {Year}\\\text {Cash flows}\end{array}\begin{array}{lll} 0 \\\hline -\$1,100\end{array}\begin{array}{lll}1 \\\hline \$450\end{array}\begin{array}{lll}2 \\\hline \$470\end{array}\begin{array}{lll}3 \\\hline \$490\end{array}\end{array}$

a. $9.70 \%$
b. $10.78 \%$
c. $11.98 \%$
d. $13.31 \%$
e. $14.64 \%$