If, When Calculated IRR Through Interpolation, Over a 10-Year Investment

question 22

Multiple Choice

If, when calculated IRR through interpolation, over a 10-year investment horizon, the NPV, using an interest rate of 12%, is ($3,752.76) and the NPV, using an interest rate of 3%, is $6,360.04, IRR for the project is

• A) 9.2%
• B) 5.3%
• C) 4.5%
• D) 5.8%
• E) 8.7%

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