Simms Corp A $12.55 \%$ B $13.21 \%$ C $13.87 \%$ D $14.56 \%$

Short Answer

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. $\begin{array}{c}\begin{array}{lll} \text {Year}\\\text {Cash flows}\end{array}\begin{array}{lll} 0 \\\hline -\$1,000 \end{array}\begin{array}{lll}1 \\\hline \$425\end{array}\begin{array}{lll}2 \\\hline \$425\end{array}\begin{array}{lll}3 \\\hline \$425\end{array}\end{array}$


a. $12.55 \%$
b. $13.21 \%$
c. $13.87 \%$
d. $14.56 \%$
e. $15.29 \%$