Answer Happy

16) When using the internal rate of return (IRR) investment rule, we compare: A) the average return on the investment opportunity to returns on all other investment opportunities in the market. B) the average return on the investment opportunity to returns on other alternatives in the market with equivalent risk and maturity. C) the NPV of the investment opportunity to the average return on the investment opportunity. D) the average return on the investment opportunity to the risk-free rate of return. Use the table for the question below. Consider a project with the following cash flows in $: Year 0 1 2 Cash Flow -10,000 4000 4000 4000 4000 3 4 17) Assume the appropriate discount rate for this project is 15%. The payback period for this project is closest to: A) 3.0 years. B) 2.5 years. C) 2.0 years. D) 4.0 years.