Question
Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can
Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.
| Year | 0 | 1 | 2 | 3 |
| Cash flows | -$1,025 | $425 | $425 | $425 |
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
