You Are Considering an Investment for Which You Require a 14

question 36

Multiple Choice

You are considering an investment for which you require a 14 percent rate of return.The investment costs $61,900 and will produce cash inflows of $26,000 for three years.Should you accept this project based on its internal rate of return? Why or why not?

• A)Yes, because the IRR is 12.51 percent
• B)Yes, because the IRR is 13.65 percent
• C)Yes, because the IRR is 13.67 percent
• D)No, because the IRR is 12.51 percent
• E)No, because the IRR is 13.65 percent

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Definitions:

Macrosystem Level

Pertains to the broadest context in ecological systems theory, encompassing societal norms, economic systems, and cultural values that influence an individual's development.

Mesosystem Level

A term from ecological systems theory describing interactions between different microsystems or immediate environments, like home and school.

Microsystem Level

The closest layer of environment in Bronfenbrenner's ecological systems theory, consisting of settings where an individual directly interacts, like family or school.

Internal

Pertaining to or existing within an entity, such as an organization, individual, or system, often as opposed to external factors or influences.