A Project Has an Initial Requirement of $698,700 for Fixed

question 32

Multiple Choice

A project has an initial requirement of $698,700 for fixed assets and $61,000 for net working capital.The fixed assets will be depreciated to a zero book value over the four-year life of the project and will be worthless at the end of the project.All of the net working capital will be recouped after four years.The expected annual operating cash flow is $218,000.What is the project's internal rate of return if the tax rate is 35 percent?

• A)7.72 percent
• B)8.41 percent
• C)8.69 percent
• D)9.11 percent
• E)9.97 percent

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Definitions:

Secondary Category

A further division within a primary classification, used to organize and group items or information more specifically.

Sexual Orientation

Sexual orientation is an enduring pattern of emotional, romantic, or sexual attractions to men, women, both sexes, neither sex, or another sex. It also refers to a person's sense of identity based on those attractions, related behaviors, and membership in a community of others who share those attractions.

Primary Category

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Geographic Location

The specific physical position of a person or thing, often described by coordinates of longitude and latitude, or a regional description.