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 | |
|
| a. | 11.29% |
| ||
|
| 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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ISE Managerial Accounting Creating Value In A Dynamic Business Environment
Authors: Ronald W. Hilton, David Platt
13th Edition
1265046794, 9781265046798
