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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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| a. | 11.29% |
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| b. | 9.64% |
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| c. | 12.58% |
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| d. | 10.82% |
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| e. | 11.76% |
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