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Author Question: A project requires a current expenditure of $300 and expects to generate $100 cash inflows at the ... (Read 67 times)

vHAUNG6011

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on: Apr 25, 2021

Question 1

A project costs $1,000 today and is expected to produce cash inflows of $800 at the end of each of the next two years. If the firm's cost of capital is 10%, what is the modified internal rate of return? Round answer to the nearest whole percent.
◦ 30%
◦ 23%
◦ 13%
◦ 21%
◦ 33%

Question 2

A project requires a current expenditure of $300 and expects to generate $100 cash inflows at the end of each of the next 5 years. What conclusion can be drawn from examining an NPV profile for this project?
◦ Accept the project if the cost of capital exceeds 20%
◦ Accept the project if the cost of capital is below 20%
◦ Reject the project if the cost of capital exceeds 10%
◦ Reject the project if the cost of capital exceeds 7%
◦ Reject the project if the cost of capital exceeds 5%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by vHAUNG6011 on Apr 25, 2021

robbielu01

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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vHAUNG6011

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

cpetit11

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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