Project X Has a Project with Cost of Capital of 9

question 13

Multiple Choice

Project X has a project with cost of capital of 9%, initial cost of $1,000, and annual after-tax cash flow of $450 for 3 years.Cash flow is reinvested at 8%.What are the IRR and MIRR, respectively?

• A)16.65% and 13.47%
• B)13.47% and 16.65%
• C)16.65% and 16.65%
• D)16.65% and 10.52%

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Definitions:

Stimulus Generalization

The process by which a response is given to similar stimuli as to the original conditioned stimulus in classical conditioning.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which increases or decreases the likelihood of a behavior being repeated.

Passive Avoidance Learning

A form of learning in which an individual learns to refrain from certain behaviors as a result of experiencing or anticipating negative consequences.

Punishment

A process in behavioral psychology where an unfavorable outcome follows an undesirable behavior, aiming to decrease the probability of the behavior recurring.