Question 1 Not yet answered You buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. What is the internal rate of return? Points out of 1 Select one: O a. 5% P Flag question O b. 6% O c.7% O d. More than 7% Question 2 Answer saved A firm with capital rationing Points out of 1 P Flag question Select one: O A. may reject some investment projects expected to create value. O B. has excess funds available for financing new investment projects. O C. cannot use capital budgeting decision rules to evaluate projects, O D. will not be able to create any shareholder value. Clear my choice Question 3 Not yet answered Justin is the CFO of Rose Exterminators Inc. REI has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $55,000. If the asset is part of the 3-year MACRS category (33% first year depreciation) and the company's tax rate is 34%, what is the cash flow from the project in year 12 Points out of 1 P Flag question Select one: O a. $16,800 O b. $15,100 O c. $22,671 O d. $16,667