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

Multiple Choice

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%