If a Project Costs $72,000 and Returns $18,500 Per Year

question 55

Multiple Choice

If a project costs $72,000 and returns $18,500 per year for 5 years,what is its IRR?

• A) 8.98%
• B) 7.39%
• C) 8.50%
• D) 7.67%

---

Definitions:

Marginal Product

The additional output that is produced by employing one more unit of a particular input, holding other inputs constant.

Market Price

The current price at which an asset or service can be bought or sold.

Profit-Maximizing

A strategic goal of businesses to achieve the highest possible profit through adjusting production levels, pricing strategies, and cost management.

Final Good

A good that is intended for final use by the consumer, distinct from intermediate goods which are used in producing other goods.