The Cash Inflows Expected During a Project's Life Are Equal

question 71

Multiple Choice

The cash inflows expected during a project's life are equal in amount.In determining the internal rate of return, how is the present value factor calculated?

• A)By dividing the initial outlay by the annuity amount
• B)By multiplying the annuity amount by the number of years it occurs
• C)By looking in the present value of an annuity table for the number of years and the respective discount rate
• D)By dividing the present value of the annuity by the initial outlay

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