Question: Question 15 8.57 pts Assume a given project's IRR (Internal Rate of Return) is 11.2%. Which of the following is true, if the project has
Question 15 8.57 pts Assume a given project's IRR (Internal Rate of Return) is 11.2%. Which of the following is true, if the project has conventional cash flows? We do not have sufficient information as to whether the project's NPV will be positive with only IRR and the discount rate. The project's NPV will be positive when the discount rate is lower than 11.2%. The project's NPV will be positive when the discount rate is at 11.2%. The project's NPV will be positive when the discount rate is higher than 11.2%. Question 16 8.57 pts Assume that the firm invests $80,000 today to get $23,000 at Year 1 (i.e. one year from now). $19.000 at Year 2, $23,000 at Year 3, $25,500 at Year 4 $26,500 at Year 5. What's the Net Present Value of this investment? Assume the Interest (discount) rate of 10.20%. O $4.159.92 $7.299.40 O $3.295.87 $6,172.50 O $2,869.14
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
