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5. The IRR technique adjusts for the time value of money by assuming that the project's cash flow is reinvested at the A. B. C.

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5. The IRR technique adjusts for the time value of money by assuming that the project's cash flow is reinvested at the A. B. C. D. E. required rate of return. project's implied rate of return the best rate available in the market. business owner's required payback period rate. None of the above is true. 6. What are the following project's operating cash flows for year 1: Sales: $11,000 All costs excluding depreciation: 25% of sales Annual depreciation expense: $3,000 Tax rate: 21% Purchase price of asset: $8,200 Current assets: $1,000 Current liabilities: $700 D E $4,200 $6,200 $6,218 $7,582 None of the above 7. What is our firm's initial investment, using the above data. A B D E $1,000 $2,500 $3,400 $8,500 None of the above

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