A Firm Is Considering a Project Requiring an Investment of $27,000

question 170

Multiple Choice

A firm is considering a project requiring an investment of $27,000. The project would generate an annual cash flow of $6,296 for the next seven years. The company uses the straight-line method of depreciation. The approximate internal rate of return for the project is

• A) 6%.
• B) 8%.
• C) 12%.
• D) 14%.

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Definitions:

Fetus

A developing mammal or human within the womb, after the embryonic stage and until birth.

Pelvis

A basin-shaped structure in the skeleton located at the lower part of the trunk, composed of the hip bones, sacrum, and coccyx.

Fallopian Tube

Tubes that extend from either side of the uterus, through which eggs travel from the ovaries to the uterus.

Opening

An entrance or aperture in a structure that provides access or allows the passage of objects, fluids, or light.