What Is the Internal Rate of Return for a Project

question 43

Multiple Choice

What is the internal rate of return for a project that has a net investment of $14,600 and a single net cash flow of $25,750 in 5 years?

• A) 10%
• B) 12%
• C) 15.3%
• D) 13.1%

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Definitions:

Median Income

The middle income in a list of incomes, where half of the incomes are higher and half are lower.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Mean Household Income

The average income earned by households in a specific geographical area, calculated by summing all incomes and dividing by the number of households.

Industrially Developed

Referring to countries or regions that have advanced economic bases, primarily in manufacturing and services, and high levels of income per capita.