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

question 71

Multiple Choice

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

• A)25% and 400%.
• B)125% and 500%.
• C)-44% and 11.6%.

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Definitions:

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Descriptive Norm

Social norms that describe what is typically done in a given context, influencing individuals' behavior by providing information about what is considered normal or typical behavior.

Consistency Motive

The desire to maintain uniformity in one's attitudes, beliefs, and behaviors over time.

Affiliation Goal

An individual's aim to build, maintain, or restore positive relationships with others.