What Is the Internal Rate of Return for a Project

question 30

Multiple Choice

What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years?

• A) between 10% and 11%
• B) between 9% and 10%
• C) between 11% and 12%
• D) between 12% and 13%

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Definitions:

Gini Ratio

A measure of income inequality within a population, ranging from 0 for perfect equality to 1 for maximum inequality.

Lorenz Curve

A visual depiction showing how income or wealth is spread out across a society, highlighting the levels of inequality.

Gini Ratio

A measure to determine the imbalance in earnings among a community's members, moving from 0, suggesting equality, to 1, suggesting extreme inequality.