Question 1
A company has the following pattern of cash flows. Today -$47 000, Year 1 -$15 500, Year 2 + $16 000, Year 3 + $35 000, Year 4 + $57 000. What is the IRR?
◦ 29.301%
◦ 19.301%
◦ 9.301%
◦ 39.301%
◦ 49.301%
Question 2
A company is planning on investing the following monies. They spend Today -$26 000, Year 1 -$7000, Year 4 -$11 000, and Year 7 -$10 100. Their cash inflows are Years 1-3 inclusive + $12 000, Years 4-9 inclusive + $16 000. What is their IRR?
◦ 10.18%
◦ 35.18%
◦ 25.18%
◦ 15.18%
◦ 5.18%