Problem:

The Flour Baker is considering a project with the following cash flows. Should this project be accepted based on its internal rate of return if the required return is 11 percent?

• Year 0 1 2 3 4
• Cash Flow -$59,000 $12,000 $24,000 $22,000 $13,000

Select one:

a. Yes, because the project's rate of return is 7.78 percent

b. Yes, because the project's rate of return is 9.36 percent

c. No, because the project's rate of return is 7.78 percent

d. No, because the project's rate of return is 9.36 percent

e. No, because the project's rate of return is 13.08 percent

Note: Could someone please give me a step by step solution?