Gladeer Company Is Evaluating an Investment That Will Cost $520,000

Multiple Choice

Gladeer Company is evaluating an investment that will cost $520,000 and will yield cash flows of $300,000 in the first year, $200,000 in the second year, and $100,000 in the third and final year. Use the tables below and determine the internal rate of return. Present value of $1: The IRR of the project will be:

A) between 9% and 10%.
B) less than 8%
C) less than 9%, more than 8%
D) more than 10%