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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