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Posted by on Tuesday, July 28, 2009 at 10:22pm.

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC 10.00%
Year

0

1

2

3

4

5
Cash flows

-$9,000

$2,000

$2,025

$2,050

$2,075

$2,100

A. 3.39%
B. 4.68%
C. 4.46%
D. 3.34%
E. 3.52%
The chose B but I don't think it is correct
The answer I chose is B

  • Investing ( pease help) - , Tuesday, July 28, 2009 at 11:16pm

    No cash flow data was provided. You have not defined IRR or WACC. Frankly, I don't think you are going to get much help here.

  • Investing ( pease help) - , Tuesday, July 28, 2009 at 11:42pm

    Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

    Year

    0

    1

    2

    3

    4

    5
    Cash flows

    -$9,000

    $2,000

    $2,025

    $2,050

    $2,075

    $2,100
    answers
    A. 3.39%
    B. 4.68%
    C. 4.46%
    D. 3.34%
    E. 3.52%
    THE answer i choose was B.

  • Investing ( pease help) - , Tuesday, July 28, 2009 at 11:45pm

    Years 0 1 2 3 4 5
    cash flow
    -$9,000

    $2,000

    $2,025

    $2,050
    $2,075
    $2,100

  • Investing ( pease help) - , Wednesday, July 29, 2009 at 9:10am

    If you post an attempt to solve the problem as far as you can, chances are that teachers will help you with the math part which is probably where help is needed.

  • Investing ( pease help) - , Wednesday, July 29, 2009 at 9:47am

    You still have not supplied the full cash flow information.
    On the other hand, I have worked out a similar problem. You would have no difficulty solving yours after looking over the calculations of the example.
    http://www.jiskha.com/display.cgi?id=1248867678

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