Given the Following Annual Net Cash Flows, Determine the IRR

question 98

Multiple Choice

Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,800. Year Net Cash Flow
1 $1,000
2 $750
3 $500

• A) 14%
• B) 12%
• C) 8%
• D) 25%

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Definitions:

Fixed-Ratio Schedule

A fixed-ratio schedule is a type of operant conditioning reinforcement schedule where a response is reinforced only after a specified number of responses.

Variable-Ratio Schedule

A reinforcement schedule in which a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.

Continuous Schedule

In operant conditioning, a reinforcement schedule where every instance of the desired behavior is reinforced.

Observational Learning

Learning that occurs through observing the behavior of others, also known as modeling.