Glades Thread Company is evaluating an investment that will cost $720,000 and will yield cash flows of $230,000 in the first year, $370,000 in the second year, and $360,000 in the third and the final year

Use the table below and determine the internal rate of return.
Present value of $1:

8% 9% 10% 11% 12%
1 0.926 0.917 0.909 0.901 0.893
2 0.857 0.842 0.826 0.812 0.797
3 0.794 0.772 0.751 0.731 0.712
4 0.735 0.708 0.683 0.659 0.636
5 0.681 0.65 0.621 0.593 0.567

The IRR of the project will be ________.
A) between 11% and 12%
B) less than 10%
C) less than 11%, more than 10%
D) more than 12%

A .A)
At 10% $230,000 0.909 $209,070
$370,000 0.826 305,620
$360,000 0.751 270,360
(720,000 )
Net Present Value $65,050

At 11% $230,000 11 $207,230
$370,000 0.901 330,410
$360,000 0.885 318,600
(720,000 )
Net Present Value $136,240

At 12% $230,000 0.893 $205,390
$370,000 0.787 291,190
$360,000 0.712 256,320
(720,000 )
Net Present Value $32,900