Question: QUESTION 10 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
QUESTION 10
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 | -$1,375 | $425 | $425 | $425 |
| a. | 3.83% | |
| b. | 3.61% | |
| c. | 3.68% | |
| d. | 3.20% | |
| e. | 2.84% |
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