PLEASE ANSWER ASAP - Thankyou

1. You are offered an asset costing $1,200 that has cash ows of $200 at the end of each of the next 10 years. What is the IRR of the asset?

Multiple Choice

a) 12%.

b) 5.56%.

c) 8%.

d) 0.

e) 10.56%.

2. The following cash-ow pattern has two IRRs. Which statement is correct?

Year	Cash Flow
0	-500
1	600
2	300
3	300
4	200
5	-1,000

Multiple Choice

a) You will invest in this project if there is no discount rate (its zero).

b) The project has a positive NPV when the discount rate is greater than 60%.

c) The project has a positive NPV when the discount rate is 35%.

d) There is no positive IRR for this project.

e) As the discount rate goes up, the NPV of the project also goes up.