Shields Company Has Gathered the Following Data on a Proposed

question 81

Multiple Choice

Shields Company has gathered the following data on a proposed investment project:
$\begin{array}{|l|r|}\hline \text { Investment Required in Equipment } & \$ 400,000 \\\hline \text { Annual Cash Inflows } & \$ 80,000 \\\hline \text { Salvage Value } & \$-0- \\\hline \text { Life of the Investment } & 10 \text { years } \\\hline \text { Discount Rate } & 10 \% \\\hline\end{array}$
(Ignore income taxes in this problem.)
- The internal rate of return on the investment is closest to which of the following?

• A) 10%.
• B) 13%.
• C) 15%.
• D) 17%.

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Definitions:

Carbohydrates

Organic compounds occurring in foods and living tissues, including sugars, starch, and cellulose, which provide energy or contribute to structure.

Lymph

A body fluid formed within the tissue spaces and circulated throughout the body.

Glucose

A simple sugar that serves as the main source of energy for the body's cells.

Protein

Large molecules composed of one or more long chains of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.