Determine the interest rate to be charged on a $100,000 loan that faces:
i. Administrative costs = 2%
ii. Funding costs = 5%
iii. Risk bearing costs = 1%
iv. Fees = 0.5%
2. If the internal rate of return exceeds the discount rate, then the net present value of a project is
a. positive.
b. negative.
c. zero.
d. one.