GuSont Inc The Internal Rate of Return (IRR) Is (Note: to Solve

question 141

Multiple Choice

GuSont Inc. was considering an investment in the following project: $\begin{array}{lrr}\text { Required initial investment } & \$ 990,000 \\\text { Net annual after-tax cash inflow } & \$ 165,000 \\\text { Annual depreciation expense }(\$ 990,000-\$ 165,000) / 15 \text { years } & \$ 55,000 \\\text { Estimated salvage value } & \$ 165,000 \\\text { Life of the project in years } & 15\end{array}$ The internal rate of return (IRR) is (Note: to solve this problem students will need access either to Appendix C, Table 2 (Chapter 12) or to Excel) :

• A) Less than 10%.
• B) Somewhere between 10% and 12%.
• C) Somewhere between 12% and 14%.
• D) Somewhere between 14% and 15%.
• E) Greater than 15%.

---

Definitions:

Supervision

The act of overseeing or directing work or workers, often involving guidance, support, and instruction in a professional or educational context.

Responsibility

A duty or task that one is required or expected to perform.

Dual Relationship

A situation in which a professional, often in healthcare or counseling, has another significant connection or role with their client, potentially compromising the objectivity and ethical boundaries of their professional relationship.

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives.