Quasar Company Is Evaluating an Investment That Will Cost $520,000

question 68

Multiple Choice

Quasar Company is evaluating an investment that will cost $520,000 and will yield cash flows of $300,000 in the first year, $200,000 in the second year, and $100,000 in the third and final year. Please use the tables below and determine the internal rate of return.
$$\begin{array} { | r | r | r | r | r | r | r | } \hline\text { Present Value of } \$ 1\\ \hline & 5 \% & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.907 & 0.890 & 0.873 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.864 & 0.840 & 0.816 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.823 & 0.792 & 0.763 & 0.735 & 0.708 & 0.683 \\\hline 5 & 0.784 & 0.747 & 0.713 & 0.681 & 0.650 & 0.621 \\\hline\end{array}$$
Please choose the percentage below that comes closest to the actual IRR.

• A) 7%
• B) 8%
• C) 9%
• D) 10%

Understand the concept of locus and its significance in genetics.

Distinguish between homozygous and heterozygous genetic conditions.

Grasp the concept of genetic linkage and its impact on inheritance patterns.

Understand the determination of sex in humans and its genetic basis.

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Definitions:

Operating Cash Flows

The amount of cash generated by a company's regular business operations.

Sunk Costs

Expenses that have already been incurred and cannot be recovered.

Project Undertaken

Refers to a specific initiative or task that has been started or committed to, usually within a business or professional context.