A Property Was Acquired for $950,000 and Then Produced Cash

question 11

Multiple Choice

A property was acquired for $950,000 and then produced cash flows of $100,000,$120,000,$135,000,$135,000,and $125,000 at the end of years one through five,respectively.The property was then sold for $1,200,000 at the end of the fifth year.What was the internal rate of return for this investment?

• A)16.0%
• B)16.5%
• C)15.5%
• D)12.8%

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Definitions:

Opponent-process Theory

A psychological and neurological model that explains how the perception of one color can affect the perception of another, leading to contrasting aftereffects.

Trichromatic

A theory of color vision that proposes the eye detects colors through the response levels of three types of cones sensitive to different wavelengths.

Color Discrepancy

A difference in the perception or representation of colors between what is expected and what is perceived.

Trichromatic Theory

A theory explaining human color vision based on three types of cones sensitive to blue, green, and red wavelengths.