An Investment Cost $10,000 with Expected Cash Flows of $3,000

question 22

Multiple Choice

An investment cost $10,000 with expected cash flows of $3,000 a year for 5 years.At what discount rate will the project's IRR equal its discount rate?

• A)15.24 percent
• B)27.22 percent
• C)0 percent
• D)16.67 percent
• E)21.08 percent

---

Definitions:

Intravenous Infusion

The administration of liquid substances directly into a vein as a therapeutic treatment.

Potassium Chloride

A chemical compound used medically as a supplement or medication to treat and prevent low blood levels of potassium (hypokalemia).

Saline

A solution of salt in water, commonly used in medical treatments for hydration or wound cleaning.

Venipuncture

The puncture of a vein with a needle for the purpose of drawing blood or administering fluids intravenously.