The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $350,000 Year 2 $475,000 Year 3 $400,000 Year 4 $475,000 Which of the following is the correct calculation of project Delta’s IRR? A. 5.01% B. 5.51% C. 4.26% D. 6.01%

To calculate the Internal Rate of Return (IRR) for project Delta, you would typically use a financial calculator or software like Microsoft Excel which has a built-in IRR function. The IRR is the discount rate that make the net present value (NPV) of all cash flows (both positive and negative) from a project or investment equal to zero.

Since the question presents multiple-choice answers rather than raw data for calculation, the correct IRR cannot be definitively provided without running the numbers through an actual calculation method. Typically, in a situation like this, you would use trial and error or financial software to plug in the cash flows and iterate to the rate that zeros out the NPV.

Here are the steps you might follow using a financial calculator or Excel:

1. List all the cash flows starting with the initial investment (which is not provided in your question, but is necessary for the calculation). Let's assume the initial investment is 'X' which will be a negative value. 2. Input those cash flows into the financial calculator or software by year: (-X, 350,000, 475,000, 400,000, 475,000). 3. Use the IRR function to calculate the rate that makes the NPV of these cash flows equal to zero.

In Excel, you would do something like this: - Enter the cash flows in a column, starting from Year 0 (which is the initial investment) and then Year 1 to Year 4. - Use the IRR function `=IRR(range)` where range is the cells with your cash flows. - Excel would give you the IRR based on these cash flows.

However, given that you provided four possible answers, it appears you are looking for the correct answer from those options. If you are not calculating the answer yourself but need to decide which one is correct, you should think about the project's overall profitability. A project with large net cash flows relative to the initial investment is likely to have a higher IRR. Unfortunately, without the initial investment amount, it's impossible to decide which of the answers provided is correct. The correct IRR needs to be calculated with specific values for an initial investment and cash flows in each year or through a process of elimination based on additional context that might hint at the correct IRR.