The primary advantage of the multiple-step format lies in the simplicity of presentation and the absence of any implication that one type of revenue or expense item has priority over another.

What is the IRR for the following project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?

A) 15.57% B) 0.00% C) 13.57% D) 12.25%

Differing interpretations is perhaps the greatest barrier to effective communication

Indicate whether the statement is true or false.