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. $$\begin{array} { l c c c c }
\text { Year } & 0 & 1 & 2 & 3 \
\hline \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425
\end{array}$$
A) 9.64%
B) 10.82%
C) 12.58%
D) 11.29%
E) 11.76%

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 be less than the WACC or negative,in both cases it will be rejected. $$\begin{array} { l c c c c } 
\text { Year } & 0 & 1 & 2 & 3 \
\hline  \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425
\end{array}$$
A) 9.64%
B) 10.82%
C) 12.58%
D) 11.29%
E) 11.76%

Quizplus · Accepted Answer

The Answer of 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. $$\begin{array} { l c c c c } 
\text { Year } & 0 & 1 & 2 & 3 \
\hline  \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425
\end{array}$$
A) 9.64%
B) 10.82%
C) 12.58%
D) 11.29%
E) 11.76%

Simms Corp Year 0123 Cash flows −$1,025$425$425$425\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425\end{array} Year Cash flows ​0−$1,025​1$425​2$425​3$425​​

Simms Corp $\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425\end{array}$