What is the internal rate of return on an investment

72. What is the internal rate of return on an investment with the following cash flows?
A. 5.93%
B. 5.96%
C. 6.04%
D. 6.09%
E. 6.13%
73. An investment has the following cash flows. Should the project be accepted if it has been assigned a
required return of 9.5%? Why or why not?
74. You are considering two independent projects with the following cash flows. The required return for both
projects is 10%. Given this information, which one of the following statements is correct?

75. You are considering an investment with the following cash flows. If the required rate of return for this
investment is 13.5%, should you accept it based solely on the internal rate of return rule? Why or why
not?
76. What is the profitability index for an investment with the following cash flows given a 9% required
return?
A. .96
B. .98
C. 1.00
D. 1.02
E. 1.04
77. Based on the profitability index (PI) rule, should a project with the following cash flows be accepted if
the discount rate is 8%? Why or why not?
78. You are considering two independent projects both of which have been assigned a discount rate of 8%.
Based on the profitability index, what is your recommendation concerning these projects?