Home ▶ My courses ▶ ENGR-301-2192-H ▶ 3 November - 9 November ▶ Assignment 7
Started on Monday, 11 November 2019, 5:50 PM
State Finished
Completed on Tuesday, 12 November 2019, 1:02 PM
Time taken 19 hours 12 mins
Marks 12.00/20.00
Grade 6.00 out of 10.00 (60%)
Question 1 The internal rate of return (IRR) is:
Incorrect
Select one:
Mark 0.00 out of
1.00 a. the interest rate that allows an investor to recoup the initial investment.
b. the interest rate that breaks even a project's costs and benefits.
c. the interest rate that is set up by an investor to guarantee that the return on
investment will be higher than from a bank interest rate.
d. the interest rate that measures the return from operating costs.
e. the interest rate that ensures the positive cash flow of a project.
Your answer is incorrect.
The correct answer is: the interest rate that breaks even a project's costs and benefits.
Question 2 The reasoning behind comparison of mutually exclusive projects on the basis of
Correct incremental IRR is:
Mark 1.00 out of
Select one:
1.00
a. different fractions of investments are associated with different levels of
productivity.
b. high uncertainty.
c. multiple IRRs.
d. some investments are not productive.
e. all investments are non-simple.
Your answer is correct.
The correct answer is: different fractions of investments are associated with different levels
of productivity.
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Question 3 When is the internal rate of return (IRR) negative?
Correct
Select one:
Mark 1.00 out of
1.00 a. IRR cannot be negative.
b. a project just breaks even.
c. a project is losing money.
d. a project is a simple investment.
e. a cash inflow exceeds a cash outflow.
Your answer is correct.
The correct answer is: a project is losing money.
Question 4 The following graphs indicate a project cash flow. What is the internal rate of return for this
Correct project?
Mark 1.00 out of
1.00
Select one:
a. 10%
b. 4%
c. 0%
d. 14%
e. 15%
Your answer is correct.
The correct answer is: 14%
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