1. Which of the following statements is most correct?
a. The IRR method is correct under all circumstances when comparing mutually exclusive projects.
b. The discounted payback method solves all the problems associated with the payback method.
c. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method.
d. All of the statements above are correct.
2. Travis just purchased a new Corvette. To finance this purchase, he paid $33,000 in cash and borrowed $42,000 from his father. Travis has promised to repay his father in 6 equal annual payments at an interest rate of 5.3 percent. What is the amount of each payment?
$7,300.00
$8,382.74
$7,000.00
$8,354.29