A)593%
B)5

question 98

Multiple Choice

$$\begin{array}{l}\text { What is the internal rate of return on an investment with the following cash flows? }\\\begin{array} { | l | l | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - £ 123,400 \\\hline 1 & £ 36,200 \\\hline 2 & £ 54,800 \\\hline 3 & £ 48,100 \\\hline\end{array}\end{array}$$

• A)5.93%
• B)5.96%
• C)6.04%
• D)6.09%
• E)6.13%

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Definitions:

Satisficing Error

Occurs when decision-makers settle for a solution that is good enough rather than the optimal one, due to limitations in time, resources, or information.

Adequately Involve

Ensuring sufficient participation or engagement of individuals or groups in a particular activity or decision-making process.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes.

Simplify Decision Making

The process of making choices easier by reducing the complexity of the options or the decision-making process itself.