Filter Corporation has a project available with the following cash flows:Year Cash Flow0 −$16,2001 5,6002 6,9003 6,3004 4,700 What is the project's IRR?

To calculate the Internal Rate of Return (IRR) for the project, you would typically use a financial calculator or software (like Excel), as the calculation involves solving for the roots of a polynomial equation, which can be complex. However, I'll outline the steps for you:

1. Set up the equation: The general formula for IRR is NPV = 0 = ∑ [Rt / (1+IRR)^t] - Initial Investment, where Rt is the net cash inflow during the period t. In this case, the equation would be 0 = -$16,200 +$5,600/(1+IRR) + $6,900/(1+IRR)^2 +$6,300/(1+IRR)^3 + $4,700/(1+IRR)^4.

2. Guess and check: Start with a guess for the IRR (say, 10%) and plug it into the equation. If NPV > 0, increase the guess; if NPV < 0, decrease the guess. Repeat this process until you find the IRR that makes the NPV as close to zero as possible.

3. Use a financial calculator or software: If you have access to a financial calculator or software like Excel, you can use the IRR function to calculate it directly. In Excel, you would enter the cash flows into cells (for example, A1 to A5), then in another cell, you would type "=IRR(A1:A5)" and press Enter.

Remember, the IRR is the discount rate that makes the Net Present Value (NPV) of a project zero. It represents the project's annual growth rate. If the IRR is higher than the company's required rate of return, the project would typically be considered a good investment.