1)A project has net cash flows of T0 (USD 1 million), T1 (USD 400,000), T2 (USD 300,000), T3 (USD 300,000), and T4 (USD 280,000). What is the IRR, using discount rates of 10% and 15%?

15%

12.5%

10%

11.5%

Single choice

2) What is the payback period of the following project cash flows? T0 (USD 12 million), T1 (USD 5 million), T2 (USD 4 million), and T3, (USD 4 million) (based on 365 days in a year).

3 years

2 years

2 years, 274 days

2 years, 273 days

 

Answer rating: 100% (QA)

Calculation of IRR Year To 12 T3 Cashflows DF 10 PV DF 15 1 1000000 1000000 1 A00000 0909 363600 08... View the full answer