Project Black Swan Requires an Initial Investment of $115,000

question 12

Multiple Choice

Project Black Swan requires an initial investment of $115,000. It has positive cash flows of $140,000 for each of the next two years. Because of major demolition and environmental clean-up costs, cash flow for the third and final year of the project is $(170,000) .

• A) All possible IRR's for this project are negative.
• B) It is not possible to compute an IRR for this project.
• C) This project might have more than one IRR, but only one MIRR.
• D) The project is unacceptable at any required rate of return. This project might have more than one IRR.

---

Definitions:

License

A formal permission granted by an authority to an individual or organization to engage in a particular activity or to use a specific property.

Product Life Cycle

A theory detailing the lifecycle of a product, encompassing its introduction, progression, peak phase, and eventual reduction in market presence.

Marketers

Professionals responsible for promoting, selling, and distributing a business's products or services.

Failure Rate

The frequency at which an engineered system or component fails, expressed in failures per unit of time. It is often used to analyze the reliability of products.