Question: 1. Time Cash Flows 0 ($200,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10
1.
| Time | Cash Flows |
| 0 | ($200,000) |
| 1 | 0 |
| 2 | 0 |
| 3 | 0 |
| 4 | 0 |
| 5 | 0 |
| 6 | 0 |
| 7 | 0 |
| 8 | 0 |
| 9 | 0 |
| 10 | $5,000,000 |
The internal rate of return of this cash flow stream is between 37% and 38%.
True
False
2.
| Time | Cash Flows |
| 0 | ($100,000) |
| 1 | 0 |
| 2 | 0 |
| 3 | 0 |
| 4 | 0 |
| 5 | 0 |
| 6 | 0 |
| 7 | 0 |
| 8 | 0 |
| 9 | 0 |
| 10 | 0 |
| 11 | 0 |
| 12 | $400,000 |
The internal rate of return of this cash flow stream is between 12% and 13%.
True
False
3.
| Time | Cash Flows |
| 0 | ($1,000,000) |
| 1 | 0 |
| 2 | 0 |
| 3 | 0 |
| 4 | 0 |
| 5 | 0 |
| 6 | 0 |
| 7 | 0 |
| 8 | 0 |
| 9 | 0 |
| 10 | $3,000,000 |
The internal rate of return of this cash flow stream is between 9% and 10%.
True
False
4.
| Time | Cash Flows |
| 0 | ($400,000) |
| 1 | 0 |
| 2 | 0 |
| 3 | 0 |
| 4 | 0 |
| 5 | 0 |
| 6 | 0 |
| 7 | 0 |
| 8 | 0 |
| 9 | 0 |
| 10 | $5,000,000 |
The internal rate of return of this cash flow stream is between 25% and 27%.
True
False
5.
| Time | Cash Flows |
| 0 | ($100,000) |
| 1 | 0 |
| 2 | 0 |
| 3 | 0 |
| 4 | 400,000 |
The internal rate of return of this cash flow stream is between 41% and 42%.
True
False
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