A Project Has the Following Cash Flows

question 92

Multiple Choice

A project has the following cash flows. What is the internal rate of return?

• A) 9.75 percent
• B) 10.28 percent
• C) 10.60 percent
• D) 10.67 percent
• E) 11.23 percent

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Definitions:

Performance

The act of fulfilling the duties or requirements specified in a contract or agreement.

Incidental Beneficiary

A third party who might receive a benefit from a contract between two other parties, although the contract is not primarily intended for the benefit of the third party.

Assignee

A person or entity to whom a contract or legal right is transferred.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by all parties to be legally enforceable.