Simkins Renovations Inc

question 30

Multiple Choice

Simkins Renovations Inc.is considering a project that has the following cash flow data.What is the project's IRR? Note that a project's IRR can be less than the WACC (and even negative) , in which case it will be rejected.

• A)13.13%
• B)14.44%
• C)15.89%
• D)17.48%
• E)19.22%

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Definitions:

Cold War

The period of geopolitical tension between the Soviet Union and the United States and their respective allies from the end of World War II until the dissolution of the Soviet Union in 1991.

Temporary

means lasting for only a limited period of time; not permanent.

New Left

Radical youth protest movement of the 1960s, named by leader Tom Hayden to distinguish it from the Old (Marxist-Leninist) Left of the 1930s.