Green Inc Has Invested in a Project with a Cost of of $36,504

question 98

Multiple Choice

Green Inc. has invested in a project with a cost of $36,504, annual net cash flows of $12,000, a terminal value of $4,000, and a 5-year useful life. The firm uses a 16% discount rate. Compute the internal rate of return to the nearest tenth of a percent. Ignore income taxes.

• A) 19.2%
• B) 20.8%
• C) 19.8%
• D) 18.8%

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