What Is the IRR of a Project That Costs $100,000

question 5

Multiple Choice

What is the IRR of a project that costs $100,000 and provides cash inflows of $17,000 annually for six years?

• A)0.57 percent
• B)2.00 percent
• C)5.69 percent
• D)56.87 percent

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Definitions:

Input-Related Objectives

Goals that are specifically related to the resources, information, or materials required to complete a task or project.

Quantitative Assessments

The process of evaluating or measuring something based on numerical data or metrics.

Sales Plan

A strategic document that outlines the business targets, tactics, and activities for a specific period of time, aimed at achieving sales goals.

Low Margin Products

Products that generate a minimal profit margin, often due to low selling prices and/or high costs of goods sold.