Present Value Factor for Reversion of $1 -Using Only the Information in the Table Above, What Would

question 15

Multiple Choice

Present Value Factor for Reversion of $1
$\begin{array}{cccccc}\text { Perlod } & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% \\\hline 1 & .943396 & .934579 & .925926 & .917431 & .909091 \\2 & .889996 & .873439 & .857339 & .841680 & .826446 \\3 & .839619 & .816298 & .793832 & .772183 & .751315 \\4 & .792094 & .762895 & .713503 & .708425 & .683013 \\5 & .747258 & .712986 & .680583 & .644931 & .620921 \\6 & .704961 & .666643 & .630170 & .596267 & .564474\end{array}$
-Using only the information in the table above, what would the IRR be for an investment that cost $500 in period 0 and was sold for $750 in period 5?

• A) Between 6% and 7%
• B) Between 7% and 8%
• C) Between 8% and 9%
• D) Between 9% and 10%

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Definitions:

Constraints

Factors or conditions that limit or restrict choices, actions, or outcomes within a given context or system.

Large-Scale Patterns

Broad trends or structures in society that affect groups and institutions in significant ways.

Never-Married Parent

An individual who has one or more children but has never been legally married, which may have specific social, legal, and emotional implications.

Proportion

A part, share, or number considered in comparative relation to a whole; the relationship of one thing to another in terms of quantity, size, or number.