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:

Competence

An individual's capability to effectively perform or execute a particular task.

Relatedness

The need to interact, be connected to, and experience caring for others, considered a fundamental psychological need.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Drive-reduction Approach

A theory in psychology that posits motivation arises from the need to reduce drives from physiological states of tension, such as hunger or thirst.