Which of the following could be a sunk cost?

Group of answer choices

Irrational decision-making that led to a transaction.

The expected economic loss of a transaction.

All of these answers.

The original cost of the item.

When evaluating the cash flows from a project, a financial manager needs to analyze the:

Group of answer choices

The benefits of the project

The costs of the project

The costs and benefits of the project

costs, benefits, and opportunity costs of the project.

A project has an initial investment requirement of $100,000. In year 1, it should earn $25,000; in year two, $30,000; and in year 3, $50,000. What is the project's internal rate of return?

Group of answer choices

6

6.5%

5%

7.5%

Which of the following describes how an externality can affect a market?

Group of answer choices

The cost of externalities can always be quantified and "internalized" by a party to the transaction.

Prices in a competitive market reflect the full costs and benefits of production.

A negative externality can lead to over-production.

A positive externality can lead to overproduction.

A company needs to obtain short-term financing due to an unexpected event. Which of the following options should it NOT pursue to meet its financial needs?

Group of answer choices

Issuing commercial paper.

Issuing corporate bonds.

Entering into a repurchase agreement.

Obtaining an asset-based loan.