Question: QUESTION 3 Assume a two period perfect certainty world. A firm has the following independent investment opportunities: Project Period 1 Outlay Period 2 Return

QUESTION 3 Assume a two period perfect certainty world. A firm has the following independent investment opportunities: Project Period 1 Outlay Period 2 Return A 100,000 120,000 B 150,000 162,000 C 200,000 226,000 D 300,000 333,000 The firm has an initial endowment of $500,000 and the market rate of return is 10.00%. The lowest internal rate of return (IRR) of the above projects is: a. 20.00% b. 8.00%

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