QUESTION 4 Which of the following is a pitfall/con of IRR? There is only one solution for non-normal cash flows. It has the least conservative reinvestment assumption. Both of the above are correct. None of the above are correct. QUESTION 15 When an asset is sold, there are four possible tax situations that arise. (1) is one of the possible tax situations. And the Tax Affect of that tax situation is _(2) in the TCF calculation. (1) Depreciation Recapture; (2) added to the Sale Price (1) Capital Loss; (2) added to the Sale Price (1) Capital Gain; (2) addeded to the Sale Price (1) NPV Gain; (2) subtracted from the Sale Price Support (1) Breakeven; (2) subtract from the Sale Price QUESTION 26 The following information is used in Questions 26 and 27. A Proposed Project would require a new machine with an estimated purchase price of $199,999. Shipping and handling are estimated to be $2,975. The machine would need an estimated $7,500 in inventory of which 35% would be on credit. The machine would be depreciated straight-line to $1,999 over 8 years. It is estimated the machine could be sold after 9 years for $500. [a] What is the estimated Initial Investment? [a] $202,974 0 (a) $205,044 0 [a] $207,849 0 ola) $209,669 QUESTION 35 You want $50,000 in a savings account in 7 years to buy your dream car. You plan to invest $6,000 into the account each year. About what interest rate must you earn to buy your dream car? 5.76% 0 4.7996 0 6.28% 0 5.29% Support 0