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Simms Corp  Year 0123 Cash flows $1,025$425$425$425\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425\end{array}

question 34

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.  Year 0123 Cash flows $1,025$425$425$425\begin{array} { l c c c c } \text { Year } & 0 & 1 & 2 & 3 \\\hline \text { Cash flows } & - \$ 1,025 & \$ 425 & \$ 425 & \$ 425\end{array}


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