The Dry Dock Is Considering a Project with an Initial

question 49

Multiple Choice

The Dry Dock is considering a project with an initial cost of $107,400 and cash inflows for Years 1 to 3 of $37,200, $54,600, and $46,900, respectively. What is the IRR?

• A) 12.62 percent
• B) 13.41 percent
• C) 14.48 percent
• D) 13.22 percent
• E) 14.56 percent

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Definitions:

Correlation Coefficient

A numeric metric showing how much two variables move in relation to each other.

Alcohol Consumption

The drinking of alcoholic beverages and the societal, health, and personal impacts it may have.

Correlation

A statistical measure that expresses the extent to which two variables change together, but does not imply causation.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.