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Question 5 arises when a customer who owes money to the business for goods or services received on credit becomes unable to pay the amount

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Question 5 arises when a customer who owes money to the business for goods or services received on credit becomes unable to pay the amount due. a) A prepayment b) An accrual c) A bad debt d) A provision for doubtful debts Question 6 Marks Co. is considering a new project with an initial cost of 1.3 million. In each subsequent year, the project will generate positive cashflows as follows: Project life: 5 years Year Cash flows 1 2 3 360,000 550,000 710,000 340,000 100,000 4 5 Marks Co. directors have agreed that a discount rate of 15% would be required from this project. Required: Calculate the IRR for the new project and choose the correct answer below. a) 15.50% b) 19.89% c) 8.75% d) 10.85%

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