Question: 1) ?Dice, Inc. is considering a project that has an initial outlay or cost of? $70,000. The? project's only expected cash inflow is to occur

1) ?Dice, Inc. is considering a project that has an initial outlay or cost of? $70,000. The? project's only expected cash inflow is to occur in year 7 and be equal to? $124,000. What is the IRR of this? project?

A.?10.23%

B.8.51%

C.?7.36%

D.?5.81%

2) For the following cash flow pattern of ?-$486 in period ?zero, ?$265 in period ?1, and ?$281 in period ?2, is the IRR ? above, below or equal to? 10%?

A. Below because at? 10%, the NPV is positive.

B. Above because at? 10%, the NPV is positive.

C. Below because at? 10%, the NPV is negative.

D. Equal to because at? 10%, the NPV? = 0.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!