Your Firm Is Considering an Investment That Will Cost $920,000

Multiple Choice

Your firm is considering an investment that will cost $920,000 today.The investment will produce cash flows of $450,000 in year 1,$270,000 in years 2 through 4,and $200,000 in year 5.The discount rate that your firm uses for projects of this type is 11.25%.What is the investment's internal rate of return?

A) 27.28%
B) 21.26%
C) 20.53%
D) 15.98%