Consider a Collection of 100 Birds Where 20 of Them

question 11

Multiple Choice

Consider a collection of 100 birds where 20 of them are penguins, 25 are ostriches, 15 are hawks, and 40 are doves. Penguins and ostriches are unable to fly, whereas hawks and doves can. If a bird is randomly chosen from this population, what is the probability it will be a hawk?

• A) 0.15
• B) 0.20
• C) 0.25
• D) 0.40

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its shareholders and creditors.

NPV

Net Present Value - a calculation used to assess the profitability of a project or investment by summing the present values of all cash flows associated with it.

IRR

Internal rate of return. A capital budgeting technique that rates projects according to their expected return on invested funds. The higher the return the better.

MIRR

Modified Internal Rate of Return (MIRR) is a financial metric that evaluates the profitability of investments, adjusting the internal rate of return (IRR) to account for the reinvestment of cash flows at a different rate.