46. Find the IRR for the following project: Outflow is $200,000; required rate of return is 18%; inflows are $50,000, $70,000, $80,000, and $100,000 respectively at the end of each year for the next four years.

a. 12%

b. 13.7%

c. 16.4%

d. 30%

47. The internal rate of return is best described as that discount rate that:

a. equates the NPV and IRR b. makes the NPV equal zero c. equals the required rate of return

d. equates all cash flows to the current market rate

49. In cases of conflict among mutually exclusive projects, the one with highest:

a. IRR should be chosen b. NPV should be chosen c. cost of capital should be chosen

d. with mutually exclusive projects, NPV = IRR so the highest of either is appropriate