The internal rate of return for the project is ________. (See ...

[jerry coleman]

The internal rate of return for the project is ________. (See Table 11.5)
 
  A) between 7 and 8 percent
  B) between 9 and 10 percent
  C) greater than 12 percent
  D) between 10 and 11 percent

Question 2

A corporate financial analyst must calculate the value of an asset which produces year-end annual cash flows of 0 the first year, 2,000 the second year, 3,000 the third year, and 2,500 the fourth year.
 
  Assuming a discount rate of 15 percent, what is the value of this asset?

[snackralk]

Answer to Question 1

C

Answer to Question 2

= 0/(1.15)1 + 2,000/(1.15)2 + 3,000/(1.15)3 + 2,500/(1.15)4 = 4,914