A Project Produces the Following Cash flOws Over the Next

question 276

Multiple Choice

A project produces the following cash flows over the next five years: $600, $200, $350, $400 and $500, respectively. The initial cost of the project is $1,400. What is the internal rate of return on this
Project?

• A) - 4.56%
• B) 3.67%
• C) 12.87%
• D) 14.39%
• E) The rate cannot be computed with certainty.

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Definitions:

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Describes a vehicle's inability to smoothly absorb road irregularities, leading to a rough or jarring experience for passengers.