What Is the Internal Rate of Return for a $33,000

question 26

Multiple Choice

What is the internal rate of return for a $33,000 investment (−33,000 at year zero) and cash inflows of $10,000 per year for years 1 through 4?

• A) 8.16%
• B) 21.21%
• C) 7.18%
• D) 2.39%

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Definitions:

Press Release

An official statement issued to media outlets providing information on a particular matter or event associated with an organization.

Required Rate

The minimum return an investor expects to achieve for the risk associated with a particular investment.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, usually derived from its profits.

Constant Dividend

A dividend policy by which a company pays out a fixed amount of dividend per share over time, regardless of the company's earnings fluctuations.