A 50- Year Project Has a Cost of $500,000 and Has

question 285

Multiple Choice

A 50- year project has a cost of $500,000 and has annual cash flows of $100,000 in years 1-25, and $200,000 in years 26-50. The company's required rate is 8%. Given this information, calculate the IRR of the project.

• A) 19.19%
• B) 20.20%
• C) 21.21%
• D) 22.22%
• E) 23.23%

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Definitions:

Short-Term Scheduling

The process of organizing, managing, and allocating resources and tasks over a short time period to achieve specific objectives.

Air Canada

The largest airline of Canada, providing scheduled and charter air transport for passengers and cargo.

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Assets, materials, and other supplies available to an individual or organization for achieving specific goals.

Time

A continuous sequence of events or the measurement thereof, which is a fundamental concept in physics, perception, and many aspects of human life.