You Require an IRR of 14% to Accept a Project

question 59

Multiple Choice

You require an IRR of 14% to accept a project. If the project will yield $10,000 per year for 10 years, what is the maximum amount that you would be willing to invest in the project?

• A)Less than $50,000
• B)More than $50,000 and less than $60,000
• C)More than $60,000 and less than $70,000
• D)More than $70,000

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Definitions:

High-Growth Stage

A phase of business development characterized by rapid expansion in revenue and often customer base.

Scale

The size, extent, or level of something, often used in discussions about increasing the size or scope of business operations.

Counterintuitive Decision Making

Decision-making processes that go against common sense or typical reasoning patterns, often leading to innovative or unexpected solutions.

Entrepreneurial Transition

The phase in which an entrepreneur moves the business from a startup to a more established company, often involving significant changes in its management and operations.