Suppose the Interest Rate Is 8

question 60

Multiple Choice

Suppose the interest rate is 8%.If a project requires an initial investment of $5,000 and returns $5,500 in a year,what is its internal rate of return?

• A) 2%
• B) 8%
• C) 10%
• D) 18%

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Definitions:

Reaction

A process resulting in the transformation of chemical substances into others through the breaking and formation of chemical bonds.

Organic Product

Chemical compounds produced by living organisms, typically characterized by their carbon-based structure.

Hydrophobic

Characteristic of molecules or parts of molecules that repel water or do not mix with water.

1-butanol

An organic compound, part of the alcohol family, with the formula C4H9OH, characterized by a four-carbon chain.