Industrial Industries is considering a 4- year project. The project is expected to generate operating cash flows of $-2 million, $18, million, $22 million, and $11 million over the four years, respectively. It will require initial capital expenditures of $26 million dollars and an intitial investment in NWC of $7 million. The firm expects to generate a $6 million after tax salvage value from the sale of equipment when the project ends, and it expects to recover 100% of its nwc investments. Assuming the firm requires a return of 16% for projects of this risk level, what is the project's IRR?
Question 2 options:
a. 21.36%
b. 22.04%
c. 22.49%
d. 22.94%
e. 20.91%