Assume That an Industrial Building Can Be Purchased for $1,500,000

question 26

Multiple Choice

Assume that an industrial building can be purchased for $1,500,000 today, is expected to yield cash flows of $80,000 for each of the next five years (with the cash flows occurring at the end of each year) , and can be sold at the end of the fifth year for $1,625,000. Calculate the internal rate of return (IRR) for this transaction.

• A) 3.14%
• B) 6.78%
• C) 9.20%
• D) 10.37%

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The application of creative thinking and innovation grounded in practicality and realistic constraints.

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The extent to which elements within a system or organization are interconnected, facilitating the flow of information or resources.

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The process of creating, developing, and implementing new ideas, processes, or products that bring significant improvements or create value.

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