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 | -$1,400 | $425 | $425 | $425 |
| a. | 4.17% | |
| b. | 4.04% | |
| c. | 4.44% | |
| d. | 4.53% | |
| e. | 5.67% |
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Fundamentals Of Corporate Finance
Authors: David W Blackwell, Robert Parrino, David S Kidwell
1st Edition
0471270563, 9780471270560
