Use the Following Table for Questions 109-111 $\text { Present Value of an Annuity of } 1$

question 9

Multiple Choice

Use the following table for questions 109-111. $\text { Present Value of an Annuity of } 1$
$\begin{array}{rrrr}\text { Periods } & 8 \% & 9 \% & 10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$
-A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $91,116 and is expected to generate cash inflows of $36,000 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:

High-Price Policy

A strategy where a firm sets the prices of its products or services higher than its competitors, often to signal higher quality or to cover higher costs.

Nonprice Competition

Competition based on distinguishing one’s product by means of product differentiation and then advertising the distinguished product to consumers.

Independent Pricing

A pricing strategy where prices are set based on internal considerations or costs rather than being influenced by competitors or market prices.

Diagram

A graphical representation used to illustrate relationships, data, or processes in a clear and concise manner.