A Firm Is Considering a Project Requiring an Investment of £14,150

question 56

Multiple Choice

A firm is considering a project requiring an investment of £14,150. The project would generate annual cash inflows of £3,300 per year for the next seven years. The approximate internal rate of return for the project is

• A)6%.
• B)8%.
• C)12%.
• D)14%.

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Definitions:

Lineation

Lineation in geology refers to any linear feature on the surface of a rock or within a rock mass, often created by the flow of the material or the alignment of minerals during deformation.

Sedimentary Rock

Rock formed from the accumulation or deposition of mineral or organic particles, often in layers, hardened over time by pressure and cementation.

Metamorphic Equivalent

A rock resulting from the metamorphism of an initial rock type, transforming its mineral composition or structure.

Greenstone

A metamorphic rock, typically formed under low-grade conditions, that has a greenish color due to the presence of minerals such as chlorite, epidote, or actinolite.