Hart Corp Is Considering a Project That Has the Following Cash

Hart Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected.
$\begin{array}{l}\begin{array} { l } \text { Year } \\\text { Cash flows }\end{array}\begin{array} { c c c c } 0 & 1 & 2 & 3 \\\hline - \$ 1,000 & \$ 425 & \$ 425 & \$ 425\end{array}\end{array}$

A) 12.55%
B) 13.21%
C) 13.87%
D) 14.56%
E) 15.29%

Correct Answer:

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