1. Suppose an investment will cost 90,000 initially and will generate 32,00 in the first year, 10,00 the second and 50,000 the third. the required return is 15% what is the IRR for this project

a. -11.03%

b. -10.11%

c. 10.11%

d. 11.03%

e. none of the above

2. An operating lease:

is recorded on the balance sheet as both an asset and a liability.

is reflected in the footnotes rather than on the balance sheet.

is recorded at its estimated residual balance on the balance sheet.

does not appear either on a financial statement or in the footnotes.

is recorded at its net present value on the balance sheet.

3. Which of the following cash flows SHOULD be accounted for when estimating the relevant cash flows for a capital budgeting project?

A. outlays to increase net operating working capital

B. payments for sunk costs

C. cash consumed by other projects underway at the company

D. interest payments