A Project Requires an Initial Investment of $100 000 and Immediately

question 50

Multiple Choice

A project requires an initial investment of $100 000 and immediately pays $25 000. The next year this project requires an additional investment of $50 000 and does not pay anything. In the following year the project pays $150 000. The internal rate of return (i) for this project can be obtained by

• A)using a present worth factor.
• B)solving a quadratic equation.
• C)calculating an external rate of return.
• D)solving a system of two equations.
• E)solving an ith degree polynomial equation.

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Definitions:

Critical Thinking

Dedicated to an in-depth inspection and critique of a problem with the intent of deriving a verdict.

Overconfidence

Overconfidence is a cognitive bias in which a person's subjective confidence in their abilities or outcomes exceeds the objective accuracy of those assessments.

Hypothesis

A tentative explanation put forward based on minimal evidence, intended as a preliminary point for more detailed research.

Anger Management

Strategies and techniques used to recognize signs of anger and handle it in a positive and constructive manner.