Finance Assignment | Professional Writing

Question 1 1 pts The internal rate of return is defined as the: Discount rate which causes the net present value of a project to equal zero. Maximum rate of return a firms expects to earn on a project Discount rate that equates the net cash inflows of a project to zero Discount rate that caused the profitability index for project to equal zero Rate of return a project will generate if the project is financed solely with internal funds Question

2 1 pts A project has a net present value of zero. Which one of the following best describes this project? The project’s cash inflows equals its cash outflows in current dollar terms The project has a zero percent rate of return The project requires no initial cash investment The project has no cash flows The summation of all the project’s cash flows is zero SULUI. De Calves Uyellansite Cheyy study Gulu… U Check Spel Question 3 1 pts A project has an initial cash outflow of $39,800 and produces cash inflows of $18,304, $19,516, and $14,280 for years 1 through 3, respectively. What is the NPV at a discount rate of 11 percent? $2.971.13 $7,675.95 $2,029.09 -$1,208.19 $1,311.16 Question 4 1 pts The Dry Dock is considering a project with an initial cost of $118,400. The project’s cash inflows for years 1 through 3 are $37,200, $54,600, and $46,900, respectively. What is the IRR of this project? 8.04% 8.42% 8.22% 8.56% 7.48%

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