Project Y Has Following Cash Flows: C0 = -800; C1

question 36

Multiple Choice

Project Y has following cash flows: C0 = -800; C1 = +5,000; C2 = -5,000; Calculate the IRRs for the project:

• A) 25% & 400%
• B) 125% & 500%
• C) -44% & 11.6%
• D) None of the above

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Definitions:

Absolute Value

The distance of a number from zero on the number line, disregarding whether it is positive or negative.

Set Notation

A system of symbols and terminology used to define and describe sets and their relationships in mathematics.

Absolute Value Inequality

An inequality that involves the absolute value of a variable or expression, comparing it to a number.

Absolute Values

The distance of a number from zero on the number line, disregarding the sign of the number.