The internal rate of return:

		Does not require a predetermined discount rate
		Is often used to rank investment proposals
		May be compared to the cost of capital in project evaluation
		All of the above

Clarinet Publishing is considering the purchase of a used printing press costing $38,400. The printing press would generate a net cash inflow of $20,000 a year for 5 years. At the end of 5 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation.

The projects accounting

		32 percent
		19 percent
		39 percent
		75 percent

Long Horn Medical Services is considering an investment of $100,000. Data related to the investment and present value factors are as follows:

Year	Cash Inflows	Present Value of $1.00
1	$50,000	0.85
2	46,000	0.72
3	60,000	0.61
4	80,000	0.52
5	50,000	0.44

The investments net present value is:

		$ 62,920
		$120,000
		$175,820
		$ 75,820