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:

Decision-making Process

A structured approach to making choices by gathering information, identifying alternatives, weighing options, and choosing a course of action.

Dissonance

A state of mental conflict or unease resulting from holding contradictory beliefs or attitudes.

Realistic Claims

Assertions about a product or service that are truthful, verifiable, and grounded in factual evidence, avoiding exaggeration.

Routine Decision Making

The process of making habitual or automatic choices with minimal effort or thought, typically for low-cost and frequently purchased items.