1. An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $25,000 for the next 5 years. The firm's cost of capital is 12 percent. Determine the internal rate of return for the project (to the nearest tenth of one percent).
a. 12.0%
b. 12.4%
c. 3.6%
d. 7.9%
2. If the? risk-free rate of interest ?(rf?) is 9?%, then you should be indifferent between receiving $750 in one year or
A. $ 750.00 today. B. $ 688.07 today. C. $ 825.68 today. D. none of the above.