Consider the following cash flows: Co -$27 C₁ +$ 24 C2 +$ 24 C3 +$ 24 C4 -$46 a. Which two of the following rates are the IRRs of this project? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect. 2.5% ? 33.9% ? 14.3% ? 33.9% ? 40.0% b., c., and d. What is project NPV if the discount rates are 1%, 18%, and 36%? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 3 decimal places. b. C. Discount Rate 1% 18% 36% d. NPV

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
Problem 1ST
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Consider the following cash flows:
Co
-$27
C₁
+$ 24
C2
+$ 24
C3
+$ 24
C4
-$46
a. Which two of the following rates are the IRRs of this project?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question
mark will be automatically graded as incorrect.
2.5%
? 33.9%
? 14.3%
? 33.9%
? 40.0%
b., c., and d. What is project NPV if the discount rates are 1%, 18%, and 36%?
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers
to 3 decimal places.
b.
C.
Discount Rate
1%
18%
36%
d.
NPV
Transcribed Image Text:Consider the following cash flows: Co -$27 C₁ +$ 24 C2 +$ 24 C3 +$ 24 C4 -$46 a. Which two of the following rates are the IRRs of this project? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect. 2.5% ? 33.9% ? 14.3% ? 33.9% ? 40.0% b., c., and d. What is project NPV if the discount rates are 1%, 18%, and 36%? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 3 decimal places. b. C. Discount Rate 1% 18% 36% d. NPV
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