Problem:
Starr, Co. is considering a five-year project that has an initial after-tax outlay of $250,000. The respective future cash inflows from its project for years 1, 2, 3, 4 and 5 are: $5,000, $5,000, $12,000, $43,000 and $51,000. Starr uses the internal rate of return method to evaluate projects.
Required:
Question: What is Starr's IRR?
Note: Provide specific examples to support your answers.