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:

Culture Diversification

The process by which a culture becomes more varied and complex through the incorporation of different ethnic, social, or cultural influences.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Culture

The collective set of customs, traditions, arts, social norms, and knowledge shared by a particular group of people.

Cooperation

The process of groups working jointly towards a common goal or interest.