The Following Data Are Available on a Proposed Investment Project

question 20

Multiple Choice

The following data are available on a proposed investment project:
$\begin{array}{|l|r|}\hline \text { Initial investment } & \$ 142,500 \\\hline \text { Annual Cash Inflows } & \$ 30,000 \\\hline \text { Life of the investment } & 8 \text { years } \\\hline\end{array}$
$$\begin{array} { | l | l |} \hline \text { Required Rate of Return } & 10 \%\\\hline\end{array}$$
Which of the following statements best describes the internal rate of return on the proposed investment project? (Ignore income taxes in this problem.)

• A) It is between 11% and 12%.
• B) It is between 12% and 13%.
• C) It is between 13% and 14%.
• D) It is less than the required rate of return.

---

Definitions:

Longitudinal Study

Research that follows the same subjects over a period of time to observe changes or developments.

Women's Group Activities

Refer to organized events or gatherings specifically designed for women, aiming to support, educate, or provide social interaction.

Social Unrest

Public expressions of dissatisfaction, often involving protests or demonstrations, due to perceived injustices or government actions within a society.

Relative Deprivation

The perception of being worse off relative to some standard or compared to others, which can lead to feelings of injustice or dissatisfaction.