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

question 42

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 IRRs for this project are negative.
• B)It is not possible to calculate 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.

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Definitions:

Proposition

A statement or assertion that expresses a judgment or opinion; in logic, a declarative sentence that is either true or false.

Term

A word or expression used in relation to a specific subject or context; in logic, it refers to a concept or object within a proposition.

Subject

The topic being discussed or the entity that performs the action in a sentence.

Predicate

The part of a sentence or clause containing a verb and stating something about the subject, or in logic, the attribute or characteristic expressed by the verb.