5. A shrewd businessman offers the managers of Marcus Inc. the following modified project: The firm will pay the initial outlay $575,000 only in year 2 and receive the $500,000 in years 0 and 1. As a compensation for receiving this offer, the businessman proposes that the firm pay him $1,100,000 in year 3.

Marcus Inc.s CFO argues that according to the IRR criterion the proposal is profitable. Is the CFO correct in his argument that the required rate of return is lower then the IRR?

Group of answer choices

Indifferent

More information needed

Yes

No

6. In November 2018, the Indian government rupee bond rate was 8.82%. the local currency rating from Moodys was Baa3 and the default spread for a Baa3 rated country bond was 3%. What is risk free rate in India?

Group of answer choices

8.82%

More information needed

5.82%

3%