Diamond Enterprises Is Considering a Project That Will Produce Cash

question 9

Multiple Choice

Diamond Enterprises is considering a project that will produce cash inflows of $238,000 a year for three years followed by $149,000 in year four. What is the internal rate of return if the initial cost of the project is $749,000?

• A) 3.43 percent
• B) 4.29 percent
• C) 5.81 percent
• D) 6.32 percent
• E) 7.55 percent

---

Definitions:

Insight Therapies

A range of psychotherapeutic techniques aimed at helping clients understand the root causes of their psychological issues.

Behavior Modification

Behavior Modification is a therapeutic approach which involves changing undesirable behaviors through reinforcement, punishments, and other learning principles.

Gestalt Therapies

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, within the context of their environment, using the principles of Gestalt psychology.

Humanistic Therapy

A therapeutic approach focusing on self-exploration, recognizing individual free will, and the potential for personal growth and self-improvement.