Use the Table for the Question(s)below

question 2

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows in $:
-Assume the appropriate discount rate for this project is 15%.The IRR for this project is closest to:

• A)21%.
• B)22%.
• C)15%.
• D)60%.

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Definitions:

Variable Costs

Expenses that vary with the amount of output or sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.

Break-Even Point

The level of production or sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Cost-Volume-Profit Chart

A graphical representation that shows the relationship between a company's cost, production volume, and profits.