What Is the Approximate IRR for a Project That Costs

question 109

Multiple Choice

What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for six years?

• A)19.9 percent
• B)30.0 percent
• C)32.3 percent
• D)80.0 percent $100,000 = $30,000

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Definitions:

Lewis Terman

An American psychologist best known for his work in intelligence testing and for initiating the longitudinal study of gifted children.

Longitudinal Study

A research method in which data is collected from the same subjects repeatedly over a period of time, often many years.

Optimistic Explanatory Style

Refers to a manner of explaining life events in a positive light, attributing good outcomes to personal abilities and bad outcomes to external factors.

Pessimistic Explanatory Style

The inclination to ascribe adverse occurrences to constant, inherent, and widespread factors.