What Is the Internal Rate of Return (IRR) of an Investment

question 63

Multiple Choice

What is the internal rate of return (IRR) of an investment that requires an initial investment of $11,000 today and pays $15,400 in one year's time?

• A) 37%
• B) 44%
• C) 43%
• D) 40%

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Definitions:

Applications

In computing, applications refer to software programs designed to assist users in performing specific tasks.

Applets

Small Java applications that can be embedded in web pages to provide dynamic and interactive features.

Integer Division

A division operation between integers where the result is also an integer, discarding any remainder.

Truncated

Refers to shortening something by cutting off part of it, often used in the context of limiting the precision of a numerical value.