Use the Following Table $\text { Present Value of an Annuity of } 1$

question 55

Multiple Choice

Use the following table, $\text { Present Value of an Annuity of } 1$
$\begin{array}{lrrr}\text { Period }&8\%&9\%&10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$ A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $379,650 and is expected to generate cash inflows of $150,000 each year for three years. The approximate internal rate of return on this project is

• A)8%.
• B)9%.
• C)10%.
• D)The IRR on this project cannot be approximated.

Comprehend and apply the concept of pooled estimate.

Determine the appropriate method for building confidence intervals based on sample size and distribution.

Understand the relationship between confidence level and interval width.

Calculate the number of successes based on given proportions.

---

Definitions:

Compensation

The act of providing something, typically money, in recognition of loss, suffering, or injury incurred; or in a business context, the total of all rewards provided to employees in return for their services.

Self-Preservation

The instinct or behavior aimed at ensuring one's own safety and well-being, especially in response to threats.

Academic Perseverance

The sustained effort and persistence in pursuing and achieving educational goals despite challenges and obstacles.

Efficacy

The ability to produce a desired or intended result, often used in contexts relating to psychology, medicine, and organizational performance.