Project a Has a Cost of $1,000, and It Will

question 45

Multiple Choice

Project A has a cost of $1,000, and it will produce end-of-year net cash inflows of $500 per year for 3 years. The project's required rate of return is 10 percent. What is the difference between the project's IRR and its MIRR? (Round off the answer to two decimal places.)

• A) 3.88%
• B) 4.31%
• C) 5.09%
• D) 5.75%
• E) 6.21%

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Goals related to the development of intellectual skills, such as understanding, applying, analyzing, evaluating, and creating knowledge.