1. Consider the cash flow stream given by x=(30,20,10). If an individual is infinitely patient, how much would they would value this cash flow stream in present dollars? (round to the nearest dollar).

2. Betagamma Inc. booked $120,000 in net income and interest expenses of $20,000 over the past year, facing a tax rate of 14%. If Betagamma was instead financed entirely with equity, what would its net income be?

1. Using the IRR to evaluate an investment opportunity has an advantage over the NPV criteria...

a. none of the below

b. since the IRR doesn't depend on the interest rate

c. when there is no opportunity to reinvest the proceeds back and in "scale up" the operation

d. because the IRR always agrees with the NPV criteria and is generally easier to compute than the NPV