The Fargas Company invested $90,000 in a two-year project in which net cash inflows for the first year totaled $57,000. Assume that the cash flows for the year all occur on the last day of the year. If the internal rate of return was exactly 10%, the cash flow for the second year must have been (without considering the effect of taxes) :
A) $36,300
B) $30,562
C) $33,000
D) $46,231
Correct Answer:
Verified
Q23: U.S.tax laws only allow depreciation deductions using
Q34: Money is a productive asset.Its opportunity cost
Q37: Which of the following methods for evaluating
Q38: Using a reasonable and realistic estimate of
Q39: Some firms accept low rates of return
Q40: Which of the following is not a
Q41: The accounting rate of return is computed
Q42: Which of the following is not an
Q43: Which of the following capital budgeting analysis
Q44: Consider the following facts - do not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents