Use the Following Information to Answer the Following Question

question 65

Multiple Choice

Use the following information to answer the following question.
Below are the expected after-tax cash flows for Projects Y and Z.Both projects have an initial cash outlay of $20,000 and a required rate of return of 17%.
Project Y Project Z

-Analysis of a machine indicates that it has a cost of $5 375,000.The machine is expected to produce cash inflows of $1,825,000 in year 1; $1,775,000 in year 2; $1,630,000 in year 3; $1,585,000 in year 4; and $1,650,000 in year 5.What is the machine's IRR?

• A)12.16%
• B)17.81%
• C)23.00%
• D)11.11%

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Definitions:

Act Out

To express thoughts or emotions through actions, often because one is unable or unwilling to express them verbally.

Gestalt Therapist

A therapist who practices Gestalt therapy, focusing on the individual's experience in the present moment and the integration of body and mind.

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A cognitive bias where an individual places excessive importance on physical appearance and body image.

Cognitive Therapy

A form of psychotherapy that aims to modify dysfunctional emotions, behaviors, and thoughts through a process of identifying and challenging negative patterns and beliefs.