Darrox,Inc

question 88

Multiple Choice

Darrox,Inc.is considering a four-year project that has an initial outlay or cost of $90,000.The future cash inflows from its project are $50,000,$30,000,$30,000,and $30,000 for years 1,2,3 and 4,respectively.Darrox uses the internal rate of return method to evaluate projects.What is the approximate IRR for this project?

• A)The IRR is less than 12%.
• B)The IRR is between 12% and 20%.
• C)The IRR is about 22.80%.
• D)The IRR is about 28.89%.

Recognize the importance and methods of internal control over cash to prevent and detect errors and fraud.

Classify and report cash and cash equivalents in financial statements according to U.S. GAAP and IFRS.

Understand the principles of recording transactions affecting cash and receivables.

Prepare and interpret a balance sheet segment related to receivables.

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Definitions:

Price

The pecuniary sum needed, anticipated, or disbursed for purchasing something.

Demand Curve

A Demand Curve illustrates how the quantity demanded of a good or service varies with its price, typically showing an inverse relationship.

Quantity Demanded

The overall volume of a product or service that individuals are inclined and financially able to acquire at a determined price.

Decrease

A reduction in amount, size, strength, or frequency.