Simkins Renovations Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that the projected IRR can be less than the WACC or even negative, in which case will be rejected.

Cash Flows

Year 0 - ($500)

Year 1 - $300

Year 2 - $290

Year 3 - $280

Year 4 - $270

ANSWERS: a. 53.16%

b. 46.46%

c. 41.10%

d. 54.06%

e. 44.68%