A project has the following cash inflows Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800

for years 1 through 4, respectively. The initial cash outflow is Rs.104,000. Which of the

following four statements is correct concerning the project internal rate of return (IRR)?

A. The IRR is less than 10%.

B. The IRR is greater than or equal to 10%, but less than 14%.

C. The IRR is greater than or equal to 14%, but less than 18%.

D. The IRR is greater than or equal to 18%.

1 Answer

Answer :

C. The IRR is greater than or equal to 14%, but less than 18%.

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