(Ignore Income Taxes in This Problem

question 151

Multiple Choice

(Ignore income taxes in this problem.) Heap Corporation is considering an investment in a project that will have a two year life.The project will provide a 10% internal rate of return,and is expected to have a $40,000 cash inflow the first year and a $50,000 cash inflow in the second year.What investment is required in the project?

• A) $74,340
• B) $77,660
• C) $81,810
• D) $90,000

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Definitions:

Octahedron

A polyhedron with eight faces.

Dodecahedron

A polyhedron with twelve flat faces, each face being a pentagon.

Cubic

A common arrangement of atoms in a mineral or the tendency for a mineral to break along three perpendicular planes.

Perpendicular Directions

directions at right angles (90 degrees) to each other.