Projects with nontraditional cash flows

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Reference no: EM132020356

1. Which of the following decision rules results in multiple answers for projects with nontraditional cash flows?

a. Payback period

b. Average accounting return

c. Discounted payback

d. Net present value

e. Internal rate of return

2. You are going to withdraw $1,025 at the end of each year for the next three years from an account that pays interest at a rate of 7% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much money will be in the account immediately after the second withdrawal is made?

a. $1,000.00

b. $957.94

c. $925.93

d. $2,000.00

e. $934.60

Reference no: EM132020356

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