1. If you (1) decrease your required return and (2) decrease the number of periods, what effect would this have on your present value ?
a) decrease, decrease
b) decrease, increase
c) increase, decrease
d) increase, increase
2. Calculate the internal rate of return of an investment with the following cash flows assuming the cost of capital is 15%.
a. 13.44%
b. 15.44%
c. 17.44%
d. 19.44%.