Francisco D'Anconia Is Considering an Investment Opportunity That Costs $10,000

question 17

Multiple Choice

Francisco d'Anconia is considering an investment opportunity that costs $10,000 today and will pay $11,500 in two years.The IRR of this opportunity is closest to:

• A)7.24%.
• B)7.50%.
• C)10.00%.
• D)15.00%.

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Definitions:

Telephone Calls

Verbal communication between two or more parties over a telephone network.

Probability

A measure quantifying the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.

Computer Printers

Devices connected to computers or networks that transfer electronic documents onto paper or other physical media.

Defective

Refers to a product, item, or component that fails to meet the quality standards or has faults, rendering it unfit for its intended purpose.