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 $1375 $425 $425   $425             a.2.84% b.3.20% c.3.83% d.3.61% e.3.68%

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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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 $1375 $425

$425

 

$425          

 

a.2.84%

b.3.20%

c.3.83%

d.3.61%

e.3.68%

 

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