Nichols Inc A) 943%
B) 9

Multiple Choice

Nichols Inc.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. $\begin{array}{lcccccc}\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\ \text { Cash flows } & -\$ 1,250 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325\end{array}$

A) 9.43%
B) 9.91%
C) 10.40%
D) 10.92%
E) 11.47%