A Firm Is Considering a Project Requiring an Investment of £100,000

question 58

Multiple Choice

A firm is considering a project requiring an investment of £100,000. The project would generate annual cash inflows of £26,380 per year for the next five years. The approximate internal rate of return for the project is

• A)8%.
• B)10%.
• C)12%.
• D)16%.

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Definitions:

Thionyl Chloride

A reactive chemical compound used for converting alcohols into chlorides and as a reagent in various organic synthesis reactions.

Organic Product

A chemical compound or substance that is based on carbon skeletons and is produced by living organisms.

Ethyl Cyclohexyl Ketone

An organic compound featuring a ketone group (C=O) bonded to an ethyl group and a cyclohexyl group.

Cyclohexanecarboxylic Acid

A carboxylic acid that features a cyclohexane ring attached to a carboxyl (-COOH) group.