Use the Table for the Question(s)below

question 83

Multiple Choice

Use the table for the question(s) below.
Consider the following two projects with cash flows in $:
-The internal rate of return (IRR) for project Alpha is closest to:

• A)25.0%.
• B)22.2%.
• C)24.5%.
• D)22.7%.

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Definitions:

Standard Normal

Refers to a normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparing and standardizing normal distributions.

Random Variable

A variable whose outcomes depend on the results of a random phenomenon.

Normally Distributed

Refers to a data distribution that follows a bell-shaped curve, characterized by data clustering around a mean or central value.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.