Answer questions 1-4 please

1. The internal rate of return (IRR) is: a. The discount rate that makes the net present value positive when factoring in the initial cash outlay. b. Equivalent to the discount rate that makes the net present value equal to zero. c. Highly dependent upon the current interest rates offered in the marketplace. d. A better methodology than net present value when dealing with unconventional cash flows. e. None of the above. 2. If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous and exclusive use of the same piece of machinery. These projects are considered to be: a. Independent. b. Interdependent. c. Mutually exclusive. d. Economically scaled. e. Operationally distinct. 3. Which one of the following increases the net present value of a project? a. An increase in the required rate of return. b. An increase in the initial capital requirement. c. A deferment of some cash inflows until a later year. d. An increase in the after-tax salvage value of the fixed assets. e. A reduction in the final cash inflow. 4. Suppose we are asked to decide whether a new project should be launched. We expect that cash flows over the five year life of the project will be $350 million in the first two years, $375 million in the next two years, and $385 million in the last year. The initial investment is expected to cost $995 million. The firm's required return is 10%. Using a financial calculator (show all work and calculator inputs below), compute the NPV and IRR of this project. (20 pts.)