1. The Internal Rate of Return (IRR) of a project is the interest rate that equates the present value of the expected fu

[answerhappygod]

1. The Internal Rate of Return (IRR) of a project is theinterest rate that equates the present value of the expected futurereceipts from the project with
A. the initial cost of the project
B. the present value of the residual value
C. the depreciated value of the project
D. Zero
And answer the question:
2. Apple and Pear are the two divisions of Cabbage plc. Applemanufactures a product which is sold only to the Pear division at aunit transfer price of $820. The unit cost of the product is $740(variable cost $600 and absorbed fixed overhead $140)
Pear has received an offer from Turnip Ltd to supply asubstitute for the product at a price of $660 per unit
Assume Apple and Pear have spare operating capacity
Which statement is correct with regard to the offer from TurnipLtd?