Project a Has a Five-Year Life and an Initial Cost

question 387

Multiple Choice

Project A has a five-year life and an initial cost of $2,000 and annual cash flows of $700 per year. Project B also has a five-year life and an initial cost of $3,000 with annual cash flows of $950 per year. Given this information, calculate the IRR cross-over rate.

• A) 5.93%
• B) 6.93%
• C) 7.93%
• D) 8.93%
• E) 9.93%

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Distribution of Data

The way in which data values are spread or scattered across a range, which can be depicted in various formats like graphs or charts.

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A method of arranging items in a sequence, where each item is ranked based on its value or importance.

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A term in statistics and mathematics describing the geometric or visual characteristics of a dataset or distribution, such as symmetry or skewness.