What Is the IRR for the Following Project If Its

question 44

Multiple Choice

What is the IRR for the following project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3, and $2,300,000 in year 4?

• A)5.83%
• B)9.67%
• C)11.44%
• D)none of the above

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Definitions:

Inhibition

A psychological or physiological process that reduces or suppresses the response to stimuli.

Spontaneous Recovery

A conditioned response that had been extinguished reoccurs after there has been a time without exposure to the conditioned stimulus.

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Unconditioned Stimulus

In the context of classical conditioning, a stimulus which innately and automatically induces a response without the necessity of prior education.