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 2 3. 4 Cash flows -$625 $300 $290 $280 $270 O a. 30.83% O b. 24.55% O C. 29.94% O d. 29.04% e. 32.63%

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Chapter11: Capital Budgeting Decisions
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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
1
2
Cash flows
-$625
$300
$290
$280
$270
O a. 30.83%
O b. 24.55%
OC. 29.94%
O d. 29.04%
O e. 32.63%
Transcribed Image Text: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 1 2 Cash flows -$625 $300 $290 $280 $270 O a. 30.83% O b. 24.55% OC. 29.94% O d. 29.04% O e. 32.63%
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