What Is the IRR of a Project That Requires an Investment

question 126

Multiple Choice

What is the IRR of a project that requires an investment of $9,900.39 today and will generate $1,500 per year for ten years and an additional $10,000 at the end of the tenth year?

• A) 8.37%
• B) 11.75%
• C) 14.43%
• D) 15.20%

---

Definitions:

Capital Substitute

An investment or process that replaces or reduces the need for capital investment, often through technology or innovative methods.

Unionized

The state of being organized into a union or labor organization to negotiate collectively with employers.

National Income

The total amount of money earned within a country from its economic activities in a given period, typically measured as GDP minus income from abroad plus income from foreign sources.

Labor Force

The total number of people employed or seeking employment in a country or specific area.