1. You are considering an investment with the following cash flows. Cash flow year 0 is -RM12,000, Cash flow year 1 is RM5,500, cash flow year 2 is RM8,000 and cash flow year 3 is -RM1,500. If the required rate of return for this investment is 13.5 percent, should you accept it based solely on the internal rate of return rule?

Select one:

a. yes, because the IRR is a positive rate of return.

b. You cannot apply the IRR rule in this case because there are multiple IRRs.

c. no, because the IRR is less than the required return.

d. yes, because the IRR exceeds the required return.

2. You purchased some fixed assets four years ago at a cost of RM129,600. You have been depreciating these assets using straight line depreciation to a zerobb book value over 7 years. Today, you are selling these assets for RM74,900. What is the after-tax cash flow from this sale if the applicable tax rate is 34 percent?

Select one:

a. RM12,776.

b. RM68,319.

c. RM13,619.

d. RM54,700.