Question 1 Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica's new restaurant

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Question 1

Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica's new restaurant. Monica wants to use IRR because it gives a very simple and intuitive answer. Rachel states that there can be errors made with IRR that are not made with NPV. Elaborate a type of error can be made with IRR but not with NPV.  

Question 2

Explain how the zero-coupon rate bond provides return to the investor and elaborate on the advantages to the corporation. 

Question 3

Cash flow statement is one of the important statements to financial managers. Explain the three main categories of this statement.