What Is the IRR of a Project That Requires an Initial

question 86

Multiple Choice

What is the IRR of a project that requires an initial cash outlay of $12,345 and is expected to generate cash flows of $3,600 a year for three years and then $4,200 a year for two more years? Assume the tax rate is zero.

• A)14.00%
• B)15.50%
• C)16.20%
• D)17.80%

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Definitions:

River Terrace

A flat, bench-like structure along the sides of a valley, formed by the erosion of a river and representing a previous level of the river bed.

Rock Falls

A geological occurrence where rocks or debris fall freely from a cliff or hillside, often due to erosion or weathering.

River Terraces

Stepped platforms along a river valley, formed by the river cutting into its own floodplain or valley floor at different times, reflecting changes in water level or flow.

Soil Development

The process by which soil forms from the physical, chemical, and biological weathering of rocks and the accumulation of organic matter over time.