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

question 105

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%.It is considering investing in a project that costs $379,650 and is expected to generate cash inflows of $150,000 each year for three years.The approximate internal rate of return on this project is

• A)8%.
• B)9%.
• C)10%.
• D)The IRR on this project cannot be approximated.

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Definitions:

Production

pertains to the processes and methods involved in the creation of goods and services.

Consumption

The use of goods and services by households or individuals, viewed as an economic activity and a component of economic systems.

Michel Foucault

A French philosopher and social theorist known for his influential work on power dynamics, social institutions, and the relationship between knowledge and control.

Sciences of Sex

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