单选题 The financial manager at Genesis Company is looking into the purchase of an apartment complex for $ 550000. Net after-tax cash flows are expected to be $ 65000 for each of the next five years, then drop to $ 50000 for four years. Genesis' required rate of return is 9 percent on projects of this nature. After nine years, Genesis Company expects to sell the property for after-tax proceeds of $ 300000. What is the internal rate of return (IRR) and net present value (NPV) on this project? IRR NPV ①A. 6.66% -$ 64170 ②B. 7.01% -$ 53765 ③C. 8.09% -$ 21535 A．① B．② C．③

【正确答案】 B

【答案解析】IRR Keystrokes: CFO=-$ 550000, CF1=$ 65000, F1=5, CF2=$ 50000, F2=3; CF3=$ 350000, F3=1. NPV Keystrokes: CF0=-$ 550000, CF1=$ 65000, F1=5, CF2=$ 50000, F2=3; CF3=$ 350000, F3=1. CPT NPV, I=9. Note: Although the rate of return is positive, the IRR is less than the required rate of 9%. Hence, the NPV is negative.