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QUESTION The IRR for a project is the discount rate that: makes the PV of the future cash flows greater than zero. A. 8 makes
QUESTION The IRR for a project is the discount rate that: makes the PV of the future cash flows greater than zero. A. 8 makes the NPV positive. C. sets the NPV of the project equal to zero. makes the NPV negative. QUESTION 2 Delicious Donut & Coffee is analyzing a project with projected cash inflows of $130,000, $190,000, and -$25,000 for years 1 to 3, respectively. The project costs $240,000 and has been assigned a discount rate of 13 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return? Why or why not? Yes The MIRR is 13.48 percent. Yes, The MIRR is 14.82 percent. No; The MIRR is 17.85 percent. No; The MIRR is 13.48 percent. OEYes: The MIRR is 11.23 percent. C
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