An Investment Costs $3,500 Today

question 39

Multiple Choice

An investment costs $3,500 today. This investment is expected to produce annual cash flows of $1,200, $1,400, $1,300 and $1,100, respectively, over the next four years. What is the internal rate of return on this investment?

• A) 8.1%
• B) 9.33%
• C) 14.6%
• D) 16.2%

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Definitions:

The Rocks

Often referring to fundamental or very solid and reliable elements within a particular context, though without more context, its specific meaning can vary.

Goals

Targets or outcomes that an individual or organization aims to achieve within a specific timeframe, guiding focus and directing efforts.

Organizational Coercive Power

The capacity of an organization to compel or influence individuals' actions through threats, sanctions, or other forms of pressure.

Threats

Potential causes of harm or danger to individuals, organizations, or systems.