The Steel Factory Is Considering a Project That Will Produce

question 58

Multiple Choice

The Steel Factory is considering a project that will produce annual cash flows of $36,800,$45,500,$56,200,and $21,800 over the next four years,respectively.What is the internal rate of return if the initial cost of the project is $135,000?

• A)7.56 percent
• B)9.19 percent
• C)11.28 percent
• D)12.24 percent
• E)12.83 percent

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Definitions:

Feedback Signal

A signal that is sent back to control a system by comparing the output with the input, thus allowing for adjustments to achieve desired performance.

Process

A continuous manufacturing operation.

SCADA System

Supervisory Control and Data Acquisition system, a computer system for gathering and analyzing real-time data to monitor and control processes.