1. Which of the following statements defines the internal rate of return (IRR) for a project?
A. Discount rate which results in a zero NPV
B. Discount rate which results in a NPV equal to the project's initial cost
C. Rate of return required by the project's investors
D. The current market rate of return for projects of similar risk
2. Your goal is to be able to withdraw $10,200 for each of the next seven years beginning one year from today and also to withdraw $52,000 ten years from today. The return on the investment is expected to be 8%. The amount that needs to be invested today is closest to:
$59,431.
$113,330.
$77,192.
$53,105.