Moepro, Inc. is considering a fiveyear project that has an initial outlay or cost of $120,000. The respective future cash inflows from its project for years 1, 2, 3, 4 and 5 are: $55,000, $45,000, $35,000, $25,000, and $15,000. Moepro uses the internal rate of return method to evaluate projects. What is the project's IRR? A. The IRR is over 25.50%. B. The IRR is about 17.86%. C. The IRR is less than 22.50%. D. The IRR is about 19.16%.

B. The IRR is about 17.86%.

Explanation:

The Calculation of the Project`s Internal Rate of Return (IRR) can be done using a Financial Calculator as follows ;

-$120,000       CFj

$55,000          CFj

$45,000          CFj

$35,000          CFj

$25,000          CFj

$15,000           CFj

Shift IRR          17,8557 or 17.86 % (2 decimal places)

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.