Use the Following Information to Answer the Question(s)below

question 84

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now,$450,000 two years from now,and $650,000 three years from now.
-The internal rate of return of this project is closest to:

• A)10.2%.
• B)12.2%.
• C)14.2%.
• D)16.2%.

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Definitions:

Frequency Distributions

A way to organize data that shows how often each value occurs.

Normal Distributions

A probability distribution that is symmetric about its mean, showing that near the mean there's a higher likelihood of occurrence, a foundational concept in statistics.

Skewed

Skewed data are data that are not symmetrically distributed, showing a longer tail on one side of the data distribution.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in many statistical contexts as a reference for probability calculations.