- Option : B
- Explanation : Enter the given cash flows in a financial calculator: CF0 = -18 million, CF1 = 5 million, CF2 = 5 million

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- Option : A
- Explanation : Enter the given cash flows and discount rate in a financial calculator to calculate NPV: C0= -25,000, CF1= 5000, CF2= 5000, CF3= 5,000, CF4= 15000, i = 5.5%, CPT NPV. NPV = $597.92.

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- Option : B
- Explanation : Using a financial calculator, compute IRR:CF0 = -5,000,000, CF1 = 3,000,000, CF2 = 3,500,000; CPT IRR = 18.88% ≈ 19%.

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5. The table below shows the after-tax cash flows of a project:

Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |

Cash flow (€) | -50,000 | 35,000 | 25,000 | 10,000 | 2,000 | 2,000 | 3,000 |

The IRR of the project is closest to:

- Option : A
- Explanation : Using a financial calculator, compute IRR: CF0 = –50,000, CF1 = 35,000, CF2 = 25,000, CF3 = 10,000, CF4 = 2,000, CF5 = 2,000, and CF6 = 3,000, CPT IRR. The IRR is 27.05%.

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