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

question 22

Multiple Choice

What is the internal rate of return (IRR) of an investment that requires an initial investment of $10,000 today and pays $14,000 in one year's time?

• A)4%
• B)14%
• C)24%
• D)40%

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Definitions:

Resources

Assets, materials, and other supplies available to an individual or organization for achieving specific goals.

Time

A continuous sequence of events or the measurement thereof, which is a fundamental concept in physics, perception, and many aspects of human life.

Computerized Short-Term Scheduling

The use of computer software to plan and schedule production tasks on a short-term basis to improve efficiency and resource allocation.

Interactive Computing

Computing systems designed for a two-way interaction between the user and the computer, allowing for real-time communication and feedback.