What Is the Internal Rate of Return for a Project

question 24

Multiple Choice

What is the internal rate of return for a project that has a net investment of $60,000 and the following net cash flows: Year 1 = $15,000; Year 2 = $20,000; Year 3 = $25,000; Year 4 = $30,000?

• A) 17.3%
• B) 16.7%
• C) 15.7%
• D) 16.3%

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Reactivity

The state or capacity of being reactive or the degree to which a thing is reactive.

Orphanages

Residential institutions dedicated to the care of children whose parents are deceased or otherwise unable or unwilling to care for them.

Centration

The tendency of young children to focus only on one aspect of an object or situation, a characteristic of preoperational stage of cognitive development.