A Project Will Cost $100,000 and Is Expected to Produce

question 55

Multiple Choice

A project will cost $100,000 and is expected to produce a single cash flow of $118,000 at the end of one year. To the nearest tenth of a percent, the IRR of this project is

• A)18.0%.
• B)11.8%.
• C)8.5%.
• D)none of the above.

---

Definitions:

Futures Contract

A futures contract is a standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used for commodities or financial instruments.

Cotton

A natural fiber used in the textile industry, known for its versatility, comfort, and absorbency.