Q1. The capital budgeting director of Green Manufacturing is evaluating a laser imaging project with the following characteristics: § Cost: $150,000 § Expected life: 3 years § After-tax cash flows: $60,317 per year § Salvage value: $0 If Green Manufacturing’s cost of capital is 11.5%, what is the project’s internal rate of return (IRR)? A) 10.0%. B) 13.6%. C) $3,875.
Q2. In order to calculate the net present value (NPV) of a project, an analyst would least likely need to know the: A) timing of the expected cash flows from the project. B) opportunity cost of capital for the project. C) internal rate of return (IRR) of the project.
Q3. An investment with a cost of $5,000 is expected to have cash inflows of $3,000 in year 1, and $4,000 in year 2. The internal rate of return (IRR) for this investment is closest to: A) 15%. B) 30%. C) 25%.
[此贴子已经被作者于2008-12-30 16:11:47编辑过] | 
发表于 2008-12-30 16:01
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