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:

Exponents

mathematical operations denoting how many times a number, the base, is multiplied by itself.

Marginal Products

The increase in output resulting from a one-unit increase in the quantity of a single input, keeping others constant.

Exponents

Mathematical notation indicating the number of times a number (the base) is multiplied by itself.

Production Function

A model in economics that links physical output of a production process to physical inputs or factors of production.