An Investment Carrying a Current Cost of $120,000 Is Going

question 96

Multiple Choice

An investment carrying a current cost of $120,000 is going to generate $50,000 of revenue for each of the next three years. To calculate the internal rate of return we need to:

• A) calculate the present value of each of the $50,000 payments and multiply these and set this equal to $120,000.
• B) find the interest rate at which the present value of $150,000 for three years from now equals $120,000.
• C) find the interest rate at which the sum of the present values of $50,000 for each of the next three years equals $120,000.
• D) subtract $120,000 from $150,000 and set this difference equal to the interest rate.

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Definitions:

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce hormones like cortisol and adrenaline, which help control heart rate, blood pressure, and other important bodily functions.

ADX Rats

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Corticosterone

A steroid hormone produced by the adrenal cortex, involved in stress responses, immune response regulation, and metabolism.

Genetic Manipulation

A technique involving the alteration of the genetic material of an organism to modify its characteristics or produce a desired outcome.