Question: please answer blth parts 6 Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that


6 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 Cash flows a. 4.96% b. 5.81% c. 7.12% d. 6.14% e. 6.53% 8 A firm is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? WACC: 11.75% -$1,025 -S2,150 $380 $765 $380 $765 $380 $765 $380 $765 CFS CFL a. $45.51 b. $50.56 c. $62.70 d. $57.64 c. $45.00
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