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. 8.13%
b. 26.73%
c. 24.39%
d. 11.76%
e. 7.55%

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 -$875 $340 $340 $340
a. 8.08%
b. 5.24%
c. 16.57%
d. 5.52%
e. 17.59%

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