What Is the Internal Rate of Return for a $55,000

question 2

Multiple Choice

What is the internal rate of return for a $55,000 investment (−$55,000 in year zero) and cash inflows of $20,000 per year for years 1 through 4?

• A) 16.88%
• B) −16.88%
• C) 45.4%
• D) −45.4%

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Definitions:

Macroeconomist

An economist who studies and analyzes large-scale economic phenomena, including inflation, unemployment, and economic growth.

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The benefit that is missed or foregone when choosing one alternative over another.

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Inflation Rate

The growth rate in the average cost of goods and services in an economy over a certain duration.