Driscoll Company Is Considering Investing in a New Project

question 57

Multiple Choice

Driscoll Company is considering investing in a new project.The project will need an initial investment of $2,400,000 and will generate $1,200,000 (after-tax) cash flows for three years.Calculate the IRR for the project.

• A)14.5%
• B)18.6%
• C)20.2%
• D)23.4%

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Definitions:

Posthypnotic State

A condition after hypnosis in which the individual may carry out suggestions given during the hypnotic session.

Dissociation Theory

A psychological theory that explains a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Frequency Theory

A theory regarding how sounds are encoded by the rate at which auditory nerve fibers fire.

Learned Associations

Connections made through experience between different stimuli or between behaviors and their consequences.