15. 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. Year 1 2 3 4 Cash flows -$1579 $400 $400 $400 $400 a. 0.56% b. 0.43% c. 0.53% Page 4

15. 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. Year 1 2 3 4 Cash flows -$1579 $400 $400 $400 $400 a. 0.56% b. 0.43% c. 0.53% Page 4

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows

Section10.4: Internal Rate Of Return (irr)

Problem 2ST

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