Spence Company Is Considering a Project That Has the Following $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3&4 \\\hline\text { Cash flows } & -\$ 1.050 & \$ 400 & \$ 400 & \$ 400& \$ 400\end{array}$

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 WACC or negative,in both cases it will be rejected. $\begin{array}{lcccc}\text { Year } & 0 & 1 & 2 & 3&4 \\\hline\text { Cash flows } & -\$ 1.050 & \$ 400 & \$ 400 & \$ 400& \$ 400\end{array}$

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