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

question 95

Multiple Choice

Use the following table $\text { Present Value of an Annuity of } 1$$\begin{array}{rrrr}\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% and is considering investing in a project that costs $68337 and is expected to generate cash inflows of $27000 each year for three years. The approximate internal rate of return on this project is

• A) 8%.
• B) 9%.
• C) 10%.
• D) less than the required 8%.

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Definitions:

Constitutional Adaptation

The process through which legal interpretations of the Constitution evolve over time to address new social, political, and technological realities.

Federal Judicial Selection

The process by which judges and justices are appointed to federal courts in the United States, typically involving nomination by the President and confirmation by the Senate.

Precedent

An earlier event, decision, or action that is regarded as an example or guide to be considered in subsequent similar circumstances.