A Company Invested $3

Multiple Choice

A company invested $3.5 million in a five-year project. It assessed that this project would generate $4.4 million revenue by the end of a five-year period in terms of today's dollars. If inflation is expected to be 3.0% per year over that period, what is the current IRR?

A) 4.7%
B) 5.7%
C) 6.8%
D) 7.8%
E) 8.7%