Decode Genetics Purchased Lab Equipment for $600,000 That Will Generate

question 34

Multiple Choice

Decode Genetics purchased lab equipment for $600,000 that will generate net cash flows of $130,000 per year for 10 years. What is the IRR for this project?

• A) 16.76%
• B) 17.26%
• C) 18.13%
• D) 17.76%

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Definitions:

List Price

The published price of a product or service, often suggested by the manufacturer or service provider, before any discounts or negotiations.

Standard Amount

A pre-determined or fixed quantity used as a benchmark, reference, or norm for measurements, production, or financial assessments.

Net Worth

The total value of an individual's or entity's assets minus their liabilities; a measure of financial health.

Speakerphone

A device that enables a telephone to function without the need to hold the handset, incorporating a microphone and loudspeaker for hands-free communication.