What Is the IRR of a Project That Costs $100,000

question 11

Multiple Choice

What is the IRR of a project that costs $100,000 and provides cash inflows of $17,000 annually for 6 years?

• A) 0.57%
• B) 1.21%
• C) 5.69%
• D) 12.10%

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Definitions:

LIFO Method

"Last In, First Out" method; an inventory strategy where the most recently produced items are sold first, leaving older inventory in stock.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Inventory Valuation

Inventory valuation is the cost associated with an entity's inventory at the end of a reporting period, affecting the cost of goods sold and the inventory balance on the balance sheet.

Interim Financial Report

A financial statement reporting a corporation's performance over a period shorter than a fiscal year, usually quarterly.