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

question 150

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.

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Definitions:

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The digestive fluid produced by the stomach, primarily composed of hydrochloric acid, which helps in food digestion.

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The muscular tube that conveys food and liquids from the mouth to the stomach.

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A severe, often fatal form of shock characterized by smooth muscle contraction and capillary dilation initiated by cytotropic (IgE class) antibodies.