You Are Considering an Investment Opportunity That Will Cost You

question 77

Multiple Choice

You are considering an investment opportunity that will cost you $15,000 up front,and return $5,000 per year for 10 years,with the first payment 5 years from today.What is the IRR for this investment?

• A)13.4%
• B)12.3%
• C)12.8%
• D)14.4%
• E)15%

---

Definitions:

UCC

Uniform Commercial Code; a set of comprehensive laws governing all commercial transactions in the United States.

Oral Contract

A type of agreement that is made verbally and not recorded in written form, which can be legally binding if it meets certain criteria.

Subject Matter

the specific topic, content, or theme that is being discussed, studied, or dealt with.

Parties

Individuals or entities involved in legal agreements or disputes.