Use the Following Information to Answer the Next Question(s)

question 37

Multiple Choice

Use the following information to answer the next question(s) .
Sunny Flowers is considering the purchase of a small business that costs $500,000. Sunny plans to sell stock valued at $250,000. The stock would pay dividends of $20,000 per year. Sunny would borrow the remaining $250,000 from a local bank at 12 percent interest.
The business is expected to generate annual cash inflows of $80,000. Duane plans to operate the business for 15 years and then turn it over to his son.
-The approximate internal rate of return of the project is

• A) 8%.
• B) 12%.
• C) 12.5%.
• D) 14%.

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Definitions:

Effective Dietary Methods

Strategies and practices that are proven to improve nutrition and promote healthy eating habits.

Carb Count

A dietary technique focusing on counting carbohydrate grams consumed to manage blood sugar levels, particularly in diabetes management.

Theory-Informed

Approaches or methods that are developed based on underlying theories or principles.

Theory-Based Intervention

An approach to health promotion or treatment that draws upon specific theories or models to understand behavior and guide the development of interventions.