4. 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. 0.53% b. 0.50% c. 0.41% d. 0.56% e. 0.43%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
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4. 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
Cash flows
-$1579
$400
$400
$400
$400
a. 0.53%
b. 0.50%
c. 0.41%
d. 0.56%
e. 0.43%
Transcribed Image Text:4. 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 Cash flows -$1579 $400 $400 $400 $400 a. 0.53% b. 0.50% c. 0.41% d. 0.56% e. 0.43%
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