Simkins Renovations Inc

question 18

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%

---

Definitions:

Eminent Domain

The power of a government to take land from private citizens for public use on the payment of just compensation.

Public Park

An open space preserved for recreational use by the public, often maintained by a city or municipality.

Duplex

A dwelling consisting of two living units with separate entrances, either side by side or on two different floors.

Lease Agreement

In regard to the lease of goods, an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.