11. What is the internal rate of return for a project that requires a current cash...

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Finance

11. What is the internal rate of return for a project thatrequires a current cash outlay of $14,975 and is expected togenerate cash inflows of $4,000 at the end of each of the next fiveyears?
A. 10.1%
B. 10.5%
C. 11.0%
D. 11.5%
E. 12.0%


12. What is the internal rate of return for a project that requiresa current cash outlay of $15,025 and is expected to generate cashinflows of $5,000 at the end of each of the next four years?
A. 11.5%
B. 12.0%
C. 12.5%
D. 13.0%
E. 14.1%


13. What is the internal rate of return for a project that requiresa current cash outlay of $20,000 and is expected to generate cashinflows of 18% of the project cost for the next eight years?
A. 8.90%
B. 9.25%
C. 9.43%
D. 9.67%
E. 9.95%

Answer & Explanation Solved by verified expert
3.7 Ratings (380 Votes)
Solution 11 B 105 is the answer Explanation NPV 14975 40001IRR 40001IRR240001IRR340001IRR440001IRR5 At Internal Rate of return IRR Net Present value NPV equals zero 0 14975 40001IRR 40001IRR240001IRR340001IRR440001IRR5 14975 40001IRR    See Answer
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11. What is the internal rate of return for a project thatrequires a current cash outlay of $14,975 and is expected togenerate cash inflows of $4,000 at the end of each of the next fiveyears?A. 10.1%B. 10.5%C. 11.0%D. 11.5%E. 12.0%12. What is the internal rate of return for a project that requiresa current cash outlay of $15,025 and is expected to generate cashinflows of $5,000 at the end of each of the next four years?A. 11.5%B. 12.0%C. 12.5%D. 13.0%E. 14.1%13. What is the internal rate of return for a project that requiresa current cash outlay of $20,000 and is expected to generate cashinflows of 18% of the project cost for the next eight years?A. 8.90%B. 9.25%C. 9.43%D. 9.67%E. 9.95%

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