Warr Company 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. $\begin{array}{c}
\begin{array}{lll}
\text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
0 \
\hline -\$1,050
\end{array}
\begin{array}{lll}
1 \
\hline \$400
\end{array}
\begin{array}{lll}
2 \
\hline \$400
\end{array}
\begin{array}{lll}
3 \
\hline \$400
\end{array}
\begin{array}{lll}
4 \
\hline \$400
\end{array}
\end{array}$

a. $14.05 \%$
b. $15.61 \%$
c. $17.34 \%$
d. $19.27 \%$
e. $21.20 \%$

Question

Warr Company 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. $\begin{array}{c}
\begin{array}{lll}
 \text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
 0 \
\hline -\$1,050
\end{array}
\begin{array}{lll}
1 \
\hline \$400
\end{array}
\begin{array}{lll}
2 \
\hline \$400
\end{array}
\begin{array}{lll}
3 \
\hline \$400
\end{array}
\begin{array}{lll}
4 \
\hline \$400
\end{array}
\end{array}$

a. $14.05 \%$
b. $15.61 \%$
c. $17.34 \%$
d. $19.27 \%$
e. $21.20 \%$

Quizplus · Accepted Answer

The Answer of Warr Company 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. $\begin{array}{c}
\begin{array}{lll}
 \text {Year}\
\text {Cash flows}
\end{array}
\begin{array}{lll}
 0 \
\hline -\$1,050
\end{array}
\begin{array}{lll}
1 \
\hline \$400
\end{array}
\begin{array}{lll}
2 \
\hline \$400
\end{array}
\begin{array}{lll}
3 \
\hline \$400
\end{array}
\begin{array}{lll}
4 \
\hline \$400
\end{array}
\end{array}$

a. $14.05 \%$
b. $15.61 \%$
c. $17.34 \%$
d. $19.27 \%$
e. $21.20 \%$

Warr Company Is Considering a Project That Has the Following