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.
|
Year
|
0
|
1
|
2
|
3
|
4
|
|
Cash flows
|
-$850
|
$300
|
$290
|
$280
|
$270
|
|
|
|
|
|
|
Pick the correct answer and show work:
|
A. |
13.13%
|
|
B. |
14.44%
|
|
C. |
15.89%
|
|
D. |
17.48%
|
|
E. |
19.22%
|