Question

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 projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

Year	0	1	2	3	4
Cash flows	-$625	$300	$290	$280	$270

a. 29.04%

b. 30.83%

c. 32.63%

d. 24.55%

e. 29.94%

Answer 1

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proiects (Autosav File Home Insert Page Layout Formulas Data Review View Add-Ins - Cut AutoSum A A General Wrap Text Calibri 11 Fill Copy A Merge & Center Conditional Format Insert Delete Format Paste S % Cell Sort & Find & BIU Format Painter Clear Formatting ble Styles er Select Clipboard Font Alignment Number Shules Cells Editing XY100 XS XW XT XU XV XX XY 86 87 CFAT YEAR 88 -625 300 89 90 290 91 280 92 270 93 ANSWER: e: IRR 29.94% [IRR(XW88:XW92)] 94 95 96 97 98 99 100 101 102 103 NPV BETA LEVE 130% Hinvest, EAA MIRR NPV IRRREPLACEMENTS HPR GMAM LEASE wacc BOND STEIN indiffEPS EBIT REPLACEMENT STats 4 EAC MACRS RATIOCASHBUDGET Re erences: SM219 02:55 W AENG 18-06-2019