2 questions

The internal rate of return, IRR, for a project is the discount rate that: Select one: a. makes the future value of net cash inflows equal to the initial investment at time o b. makes the future value of the net cash inflows equal to the cost of capital c. makes the present value of the net cash inflows equal to the cost of capital d. makes the net present value, NPV, of the project equal to 0 Consider a project that requires an initial investment of $5.0 million at time zero. The expected net cash inflows over the five-year life of the project are as follows: $1.2 million at the end of year 1: $1,4 million at the end of year 2: $1.6 million at the end of year 3; $1.8 million at the end of year 4; and $2.0 million at the end of year 5. If the required rate of return for the project is 12 percent, what is the net present value (NPV) for the project? Select one: a. $458,426 b. $605,135 e c. $206,837 d. $3,000,000