You Have an Investment Opportunity That Will Cost You $10,000

question 36

Multiple Choice

You have an investment opportunity that will cost you $10,000 today,but return $12,500 to you in one year.The IRR of this investment opportunity is closest to:

• A)80%.
• B)125%.
• C)20%.
• D)25%.

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Definitions:

Construction In Progress

The balance sheet account that represents the costs incurred on a construction project during the period it is actively being worked on.

Anticipated Losses

Expected financial deficits that are predicted based on current circumstances or activities.

Completed Contract

An accounting method where revenue and income are recognized only after a contract is finished or the work is completely done.

Percentage Of Completion

An accounting method used to recognize revenue and expenses of long-term contracts proportionally as the contract progresses toward completion.