Question
1. Time Cash Flows 0 ($200,000) 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 0 10
1.
Time | Cash Flows |
0 | ($200,000) |
1 | 0 |
2 | 0 |
3 | 0 |
4 | 0 |
5 | 0 |
6 | 0 |
7 | 0 |
8 | 0 |
9 | 0 |
10 | $5,000,000 |
The internal rate of return of this cash flow stream is between 37% and 38%.
True
False
2.
Time | Cash Flows |
0 | ($100,000) |
1 | 0 |
2 | 0 |
3 | 0 |
4 | 0 |
5 | 0 |
6 | 0 |
7 | 0 |
8 | 0 |
9 | 0 |
10 | 0 |
11 | 0 |
12 | $400,000 |
The internal rate of return of this cash flow stream is between 12% and 13%.
True
False
3.
Time | Cash Flows |
0 | ($1,000,000) |
1 | 0 |
2 | 0 |
3 | 0 |
4 | 0 |
5 | 0 |
6 | 0 |
7 | 0 |
8 | 0 |
9 | 0 |
10 | $3,000,000 |
The internal rate of return of this cash flow stream is between 9% and 10%.
True
False
4.
Time | Cash Flows |
0 | ($400,000) |
1 | 0 |
2 | 0 |
3 | 0 |
4 | 0 |
5 | 0 |
6 | 0 |
7 | 0 |
8 | 0 |
9 | 0 |
10 | $5,000,000 |
The internal rate of return of this cash flow stream is between 25% and 27%.
True
False
5.
Time | Cash Flows |
0 | ($100,000) |
1 | 0 |
2 | 0 |
3 | 0 |
4 | 400,000 |
The internal rate of return of this cash flow stream is between 41% and 42%.
True
False
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