If a Project's IRR Is 13 Percent and the Project

question 100

Multiple Choice

If a Project's IRR is 13 percent and the project provides annual cash flows of $15,000 for four years, how much did the project cost?

• A)$44,617
• B)$52,200
• C)$60,000
• D)$72,747 PV = 15,000

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Definitions:

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors or demand for that product or service.

Elastic

Describes a situation in economics where the demand or supply for a product changes significantly when its price changes.

Inelastic

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

Products

Items or services offered by a business to customers, which can include physical goods, services, and digital products.