Diamond Enterprises Is Considering a Project That Will Produce Cash

Multiple Choice

Diamond Enterprises is considering a project that will produce cash inflows of $238,000 a year for three years followed by $149,000 in year 4.What is the internal rate of return if the initial cost of the project is $749,000?

A) 3.43 percent
B) 4.29 percent
C) 5.81 percent
D) 6.32 percent
E) 7.55 percent