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:

Tendons

Strong connective tissues that connect muscles to bones, transmitting the force that allows movement.

Ligaments

Strong, flexible fibers that connect bones to other bones at joints.

Extracellular Matrix

A complex network of proteins and carbohydrates surrounding cells, providing structural and biochemical support to the surrounding cells.

Ground Substance

The unstructured material that fills the space between the cells and contains the fibers in connective tissue.