Question: please really need some help Problem 5 Calculating the IRR Suppose that a project has an initial investment and a payment at the end of
please really need some help Problem 5 Calculating the IRR
Suppose that a project has an initial investment and a payment at the end of year 1, another payment at the end of year 2, and a final investment at the end of year 3. At most, how many possible different IRRs can exist?
1
A. 2 B. 1 C. 0 D. With the above information we cannot answer the question. E. None of the above options
Problem 6
Given the following cash flows for project A: C0 = -1,000, C1 = +600, C2 = +400, and C3 = +1,500, calculate the payback period.
A. One year B. Two years C. Three years D. Cannot be determined E. None of the above options
Problem 7
If an investment project (normal project) has an IRR equal to the cost of capital, the NPV for that project is:
A. Positive B. Negative C. Zero D. Unable to determine E. None of the above options
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