Question 1
You can use the factors in an annuity table method to calculate
◦ the discount rate.
◦ the present value of a capital asset.
◦ the internal rate of return with uneven cash flows.
◦ the hurdle rate.
Question 2
Which of the following is
not an assumption of the internal rate of return model?
◦ Cash inflows from the project are reinvested in another project earning a return equal to the internal rate of return.
◦ The amount and timing of all cash flows is known exactly.
◦ All cash flows occur at the end of the year.
◦ All of these answer choices are assumptions of the internal rate of return model.