What Is the IRR Corresponding to This Cashflow Diagram

question 41

Multiple Choice

What is the IRR corresponding to this cashflow diagram?

• A)About 10.5%
• B)About 11.5%
• C)About 12.5%
• D)About 13.5%
• E)About 14.5%

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Definitions:

Estimated Salvage Value

The projected value of an asset at the end of its useful life, used in calculating depreciation.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.

Useful Life

The estimated time period that an asset is expected to be usable for the purpose it was acquired, influencing depreciation calculations and capital budgeting.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life of the asset.