43. The definition of Internal Rate of Return is the discount rate at which the NPV of a series of cash flows is greater than zero A. True B. False 44. What is the Internal Rate of Return for the series of cash flows noted below? Year #0-($200,000) Year #1-$300,000 Year #2-$100,000 Year #30 ($150,000) A. 15% B. 25% C. 45% D. 50% The Internal Rate of Return rule is to accept an investment project if the opportunity cost of capital is less than the internal rate of return. 45. A. True B. False 46. The NPV of a project depends on the: A. B. C. D. The company's choice of accounting method Managers tastes and preferences The project's cash flows and the opportunity cost of capital The profitability index 47. Driscoll Company is considering investing in a new project. The project will need an initial investment of $2.4Million (Year 0) and generate $1.2Million (after-tax) for three years. What is the Internal Rate of Return? A. 14.5% B. 18.6% C. 20.3% D. 23.4% 48. Assume the same facts as in #47, and further assume an 8% discount rate, what would be the NPV to the cash flows? A. $3,092,516 B. $2,956,456 C. $692,516 D. ($692,516) E. $0