A Company Has the Following Pattern of Cash Flows

question 55

Multiple Choice

A company has the following pattern of cash flows. Today -$47 000, Year 1 -$15 500, Year 2 + $16 000, Year 3 + $35 000, Year 4 + $57 000. What is the IRR?

• A) 9.301%
• B) 29.301%
• C) 19.301%
• D) 39.301%
• E) 49.301%

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Definitions:

Mph

Miles per hour, a unit of speed indicating the number of miles traveled in one hour.

Polarized Gladhands

Quick-connect couplings used in air brake systems that are designed to prevent incorrect connections through polarization.

Quick Release Gladhand

A coupling device for connecting the brake lines between a truck and trailer, designed for quick and easy connection and disconnection.

Slack Adjusters

Mechanical devices in air brake systems that maintain the correct distance between the brake shoes and the drum as the shoes wear.