The Gregor Corp

question 50

Multiple Choice

The Gregor Corp. is considering making an investment of $100 million. It expects that at the end of two years, it will sell the investment for $121 million. There will be no other inflows or outflows. The internal rate of return on this investment would be

• A) $21 million
• B) $10.5 million per year
• C) 0.21
• D) 0.1

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Definitions:

GREs

Standardized tests that measure verbal reasoning, quantitative reasoning, and analytical writing skills, commonly required for graduate school admissions.

Test Content Area

Specific domains or topics covered by a test, reflecting the construct it is designed to measure.

Cognitive Ability

The skill to engage in sophisticated mental activities involving logic, memory, comprehension, and finding solutions.

SATs

Standardized tests widely used for college admissions in the United States, assessing reading, writing, and math skills.