Flynn, Inc. is considering a four-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000, and $30,000 for years 1, 2, 3 and 4, respectively. Flynn uses the internal rate of return method to evaluate projects. What is the approximate IRR for this project?
The IRR is about 24.55%.
The IRR is about 28.89%.
The IRR is less than 12%.
The IRR is between 12% and 20%.