Financial Calculator Section
The following question(s) may require the use of a financial calculator.

As the capital budgeting director for Chapel Hill Coffins Company, you are evaluating construction of a new plant. The plant has a net cost of $5 million in Year 0 (today), and it will provide net cash inflows of $1 million at the end of Year 1, $1.5 million at the end of Year 2, and $2

million at the end of Years 3 through 5. Within what range is the plant's IRR?
A) 14-15%
B) 15-16%
C) 16-17%
D) 17-18%
E) 18-19%

E