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 0 1 2 3 4 Cash flows -$1540 $400 $400 $400 $400 a. 4.13% b. 0.99% c. 3.58% d. 1.22% e. 5.41%
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 0 1 2 3 4 Cash flows -$1540 $400 $400 $400 $400 a. 4.13% b. 0.99% c. 3.58% d. 1.22% e. 5.41%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Year
0
1
2
3
4
Cash flows
-$1540
$400
$400
$400
$400
a. 4.13%
b. 0.99%
c. 3.58%
d. 1.22%
e. 5.41%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F265138a3-752a-4166-840d-2e2be97b1ca0%2F821eadbd-f6df-4a4f-9f3e-1b1cc4c0fb9d%2Ffnfxqu5_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
0
1
2
3
4
Cash flows
-$1540
$400
$400
$400
$400
a. 4.13%
b. 0.99%
c. 3.58%
d. 1.22%
e. 5.41%
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